Belgium’s Financial Services and Markets Authority (FSMA) has ordered Binance, the world’s largest cryptocurrency exchange, to cease operations in the nation. Similar regulatory steps have been taken by European and US authorities. This has put a lot of pressure on other cryptocurrency exchanges that wish to grow and work within the confines of legitimate legislation.
Binance provides trading and wallet custody services in Belgium from countries outside the European Economic Area, prompting the FSMA’s ruling. This is strictly prohibited, and it is the main reason for the shutdown. To rectify this, the agency has asked that Binance restore any cryptographic keys and virtual currencies stored for Belgian consumers as soon as possible. Alternatively, move these to another authorized provider that can manage them.
Binance, which is run by Changpeng Zhao, regards itself as a virtual firm with no physical offices. Despite continued discussions with regulators, Binance expressed dissatisfaction with the FSMA’s decision and stated that it will review the notification. They aim to achieve this while continuing to work with regulators in Belgium and around the world.
It’s worth noting that Binance has recently faced regulatory issues in a number of nations. The exchange was unable to register with the Dutch authority, forcing it to leave the country. Binance was sued by the Securities and Exchange Commission (SEC) in the United States for suspected securities law violations and mishandling of user assets.
JUST IN: 🇧🇪 Belgium orders #Binance to cease crypto services in the country.
— Walletor (@walletorapp) June 23, 2023
French authorities are also looking at Binance for possible illegal offering of digital asset services and money laundering.
The European Union intends to implement fresh laws known as the Markets in Crypto-Assets Regulation (MiCA). This should be done to govern crypto-related activity, but it will take years for these rules to be implemented successfully.
Conclusion
Finally, the Belgian FSMA has ordered Binance to cease operations in the nation due to regulatory irregularities. Binance is anticipated to meet the demand and take suitable action. The changing regulatory landscape emphasizes the importance of crypto exchanges adhering to compliance norms. This is required to preserve confidence and create a safe environment for crypto investors.
