The Belgian Financial Services and Markets Authority (FSMA) has called for the immediate suspension of all cryptocurrency services provided by global cryptocurrency exchange and blockchain platform Binance.

according to statement The order, announced by the FSMA on June 23rd, expresses the FSMA’s concerns over the crypto-fiat currency exchange and custody wallet services offered by Binance in Belgium, stating that these services are not likely to affect the European economy. This was done after it was found to originate from a country outside the EEA.

This is prohibited by Belgian law and violation of this prohibition may result in criminal sanctions related to money laundering and terrorist financing.

The 27 companies involved in the operational and technical aspects of Binance’s service, 19 of which are outside the EEA, reportedly had the necessary legal documents and the provision of such services in Belgium. did not provide proof of an EEA-based legal entity authorized to do so.

Binance was unable to verify that its services in Belgium complied with the laws of other EEA member states and were performed by entities licensed by its member state, the statement said. As a result, the FSMA ruled that Binance’s activities in Belgium directly violated this prohibition and ordered Binance to immediately cease these activities.

Returns of keys and assets

In addition to the suspension order, FSMA has also requested that Binance take immediate action to return all cryptographic keys and cryptocurrencies it holds on behalf of its Belgian customers. These assets should be returned directly to the customer or transferred to entities subject to the laws of EEA member states, with Binance claiming to ensure a safe transfer.

The Brussels public prosecutor’s office has been warned of possible criminal charges.

Binance is facing a series of setbacks in its European business. Its UK subsidiary, Binance Markets Limited, has canceled its registration with the country’s Financial Conduct Authority (FCA), while Binance has also announced its withdrawal from the Dutch market after failing to secure registration as a virtual asset service provider (VASP). . In July 2022, the Netherlands was also fined €3.3 million for operating without a license.

The exchange has been under investigation by French authorities since February 2022 on suspicion of “malicious money laundering” and operating without a license in the country from 2020 to 2022.

The article, where Belgium’s chief financial regulator has ordered Binance to suspend its services in Belgium, first appeared on CryptoSlate.

By Jules

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