Binance Faces Regulatory Roadblocks in Belgium

Binance, the world’s largest cryptocurrency exchange, is under increased regulatory scrutiny. Belgium’s top market regulator, the Financial Services and Markets Authority (FSMA), recently ordered Binance to halt the offering of any virtual currency services in the country. The move is the latest in a series of challenges the crypto giant is facing from regulators worldwide.

Binance, a global entity launched in Shanghai in 2017, has risen to dominate the cryptocurrency industry. Yet, this success has drawn the attention of regulators keen on clamping down on potential avenues for money laundering. Despite the mounting pressure, Binance has consistently defended its business practices​.

Violation of Prohibitions

According to the FSMA, Binance has been providing exchange services between virtual and legal currencies in Belgium. Additionally, it has been offering custody wallet services from countries outside the European Economic Area (EEA). The FSMA stated that such actions were in direct violation of existing prohibitions.

As a result, the FSMA has ordered Binance to cease, with immediate effect, all such services in Belgium. The stringent directive is a clear sign of the growing regulatory scrutiny on the operations of Binance and other cryptocurrency exchanges​.

Legal Battles and Regulatory Compliance

Binance’s troubles extend beyond Belgium. The company is currently battling allegations from the U.S. Securities and Exchange Commission (SEC) of securities law violations. Moreover, French authorities have launched an investigation into the exchange. Amid such circumstances, Binance has withdrawn from EEA markets, including the Netherlands and Cyprus, due to regulatory issues.

Following the FSMA’s decision, a Binance spokesperson expressed disappointment, stating that the company had been in ongoing conversations with the regulator. Binance is currently reviewing the details of the notice and has pledged to work collaboratively with regulators in Belgium and around the world to meet its obligations.

Binance has also entered into an agreement with Binance.US to ensure that U.S. customer assets remain within the United States. This agreement is pending the resolution of a sweeping lawsuit filed by the SEC earlier this month​.