FSMA Aims To Kick Binance Out of Belgium

The Belgian Financial Services and Market Authority (FSMA) has issued an order to halt crypto asset exchange and storage services by Binance, the leading crypto asset exchange. The FSMA declared on June 23 that Binance had violated Belgian law on Anti-Money Laundering and Combating the Financing of Terrorism by providing crypto asset-related services from countries that are not members of the European Economic Area. The financial regulator emphasized that Binance must immediately cease all relevant services in Belgium.

The FSMA stated that Binance, according to its findings, exercises control over approximately 19 companies outside the European Economic Zone. These companies are involved in operations or technical support not disclosed in the terms and conditions agreed upon by Belgian users when registering for Binance's services.

Despite having made multiple requests for information, the regulator reported that it did not receive satisfactory answers regarding the services offered by Binance's associated companies.

The FSMA criticized Binance, stating, “Although Binance has been given ample opportunity, it has failed to provide sufficient documentation and evidence to demonstrate that the exchange services involving crypto assets and legal currencies, as well as crypto asset storage services offered and provided in Belgium, are conducted through legally authorized entities regulated by the laws of other European Economic Area member countries, including Belgium.”

As part of the order, Binance will need to contact all of its clients in Belgium and return all crypto assets and private keys held by the exchange. In response to the FSMA's decision, a spokesperson for Binance expressed disappointment and revealed that the company intends to review the notifications issued by the regulator.

The FSMA's action against Binance is not an isolated incident, as other national regulators have also taken measures against the exchange. Currently, the United States Securities and Exchange Commission is suing Binance and its U.S. entity for alleged violations of securities law.

Binance finds itself at the center of regulatory scrutiny, as it confronts allegations from the U.S. Securities and Exchange Commission (SEC) regarding violations of securities laws, while simultaneously being subjected to an investigation by French authorities, adding to the exchange's challenges. In response to regulatory issues, Binance has taken the decision to withdraw from markets within the European Economic Area, including the Netherlands and Cyprus.

Following the publication of this article, a spokesperson representing Binance expressed disappointment and shared a statement, stating, “We regret that the FSMA has reached this decision despite our ongoing dialogues. We are carefully examining the specifics outlined in their notice and remain committed to working in cooperation with regulators in Belgium and across the globe to fulfill our regulatory obligations.”

Will things get better for Binance and the entire cryptocurrency industry in the next half of 2023？ What are your thoughts about this？