Binance Ordered By Belgian Authorities to Stop All Crypto Services
Belgian Authority orders Binance to stop services due to regulatory concerns.
The Belgian Financial Services and Markets Authority (FSMA) has told Binance, a major cryptocurrency exchange, to stop its crypto services. This comes after Binance couldn't provide enough information about its companies outside of the European Economic Area (EEA).
On June 23, the FSMA said that Binance was breaking Belgian rules about Anti-Money Laundering and Combating the Financing of Terrorism because it was offering services from non-EEA countries. Therefore, Binance must stop these services in Belgium right away.
The FSMA stated that Binance controlled about 19 companies outside of the EEA that were involved in its operations or technical support, and these companies weren't mentioned in the terms and conditions that Belgian users agreed to when signing up. The regulator had asked Binance for more information multiple times, but did not get satisfactory responses.
Despite being given multiple chances, Binance didn't provide enough evidence that its services in Belgium were being conducted by a legal entity from another EEA member state. So, the FSMA said, these services have to stop.
Because of this order, Binance must contact its Belgium-based clients and return all the crypto and private keys it holds. A spokesperson from Binance said that the company was disappointed with the FSMA's decision and planned to review the notice.
This action against Binance is one of many by national regulators. The U.S. Securities and Exchange Commission is currently suing Binance and its U.S. entity for alleged violations of securities laws.
