**Belgium Orders Binance to Cease Operations, Joins Global Crackdown on Crypto Exchange**
Belgium’s Financial Services and Markets Authority (FSMA) has issued an order for Binance, the world’s largest cryptocurrency exchange, to stop operating in the country. This decision comes as regulators in both Europe and the United States take action against the platform for various violations.
**Binance Violates European Economic Area Regulations**
The FSMA declared that Binance is offering trading and wallet custody services to Belgium’s residents from countries outside the European Economic Area (EEA), which is strictly prohibited. The agency demanded that Binance immediately return all cryptographic keys and virtual currencies held on behalf of Belgian clients, or transfer them to authorized services.
**Criminal Offense Charges Imminent**
The FSMA further notified the Crown Prosecutor of Brussels of Binance’s actions, which may potentially constitute a criminal offense. The agency’s decision to take legal action against the crypto exchange underscores the severity of the violations committed.
**Binance Responds Disappointedly**
Binance expressed its disappointment with the FSMA’s decision, emphasizing its commitment to ongoing discussions with regulators. The platform also stated that it would thoroughly examine the details of the notice and continue to cooperate with authorities in Belgium and across the globe, ensuring compliance with its obligations.
**Binance’s Troubles Extend Beyond Belgium**
Binance’s regulatory woes extend beyond Belgium. The crypto exchange recently left the Netherlands due to its inability to register with the Dutch regulator. In addition, the US Securities and Exchange Commission (SEC) filed a lawsuit against Binance, its CEO Changpeng Zhao, and Binance.US for numerous violations, including mishandling customer funds and misleading investors and regulators.
Meanwhile, French authorities are conducting an investigation into Binance for alleged illegal provision of digital-asset services and aggravated money laundering.
**Previous Suspension of Services and Disruptions for Binance**
Earlier this year, Binance suspended deposit and withdrawal services for its UK customers due to a lack of support from its local banking partner. In Australia, the platform lost access to certain Aussie dollar deposit services, warning of potential disruptions to bank transfer withdrawals.
**Future Regulations for Crypto-Assets**
The introduction of the Markets in Crypto-Assets Regulation (MiCA) by the European Union will establish more comprehensive rules for crypto-related activities. However, these regulations are not set to take effect until January 2025.
Overall, the increased scrutiny faced by Binance from regulators around the world underscores the need for stricter compliance measures within the cryptocurrency industry.
GIPHY App Key not set. Please check settings