- Belgium’s financial regulator, the Financial Services and Markets Authority (FSMA), has issued a warning to Binance, the world’s largest cryptocurrency exchange, ordering it to immediately cease all cryptocurrency services in the country.
- FSMA emphasized that individuals and companies outside the European Economic Area are not allowed to offer cryptocurrency services to users in Belgium.
- Binance expressed disappointment with the decision and stated that they will continue to collaborate with regulators in Belgium and around the world.
The Financial Services and Markets Authority (FSMA) of Belgium has issued a warning to Binance, the world’s largest cryptocurrency exchange, ordering it to cease all cryptocurrency services in the country. Discover the details of this regulatory action and Binance’s response. Explore the increasing scrutiny faced by cryptocurrency exchanges and the challenges they encounter in complying with evolving regulations.
Belgium Regulator Orders Binance to Cease Operations in the Country
In a surprising move, the Financial Services and Markets Authority (FSMA) in Belgium has instructed Binance, the leading global cryptocurrency exchange, to halt all cryptocurrency services in the country. FSMA stated that individuals and companies outside the European Economic Area are prohibited from providing cryptocurrency services to users in Belgium. This warning comes as Binance has been making efforts to comply with regulatory frameworks across Europe. FSMA highlighted that there are 27 similar institutions operating in the country, with 19 of them being registered outside the European Economic Area.
Binance responded to the decision with disappointment, expressing their commitment to reviewing the details of the announcement and continuing to collaborate with regulators in Belgium and worldwide. The exchange has been actively working towards regulatory compliance in Europe, particularly with the recent approval of MiCA (Markets in Crypto-Assets) in the region. However, Binance recently announced its withdrawal from the Netherlands due to the inability to obtain a license and its focus on meeting the requirements of the European Union’s MiCA regulations in Cyprus.
It is worth noting that Binance’s UK unit, Binance Markets Limited (BML), had its registration removed upon request.
As the cryptocurrency industry continues to evolve, regulatory authorities are taking steps to ensure compliance and protect users. The FSMA’s warning to Binance reflects the increasing scrutiny faced by cryptocurrency exchanges and their operations. Binance, as a major player in the industry, will need to navigate these regulatory challenges to maintain its position as a leading global exchange.
