Binance is facing a major regulatory setback in Belgium. Belgium’s financial regulator, FSMA, has ordered the cryptocurrency exchange to immediately stop offering services in the country.
Binance is under fire from regulators around the world, with France and the SEC both taking action against the crypto exchange.
Belgium is a member of the European Economic Area (EEA), a single market of 30 countries that includes all 27 EU member states plus Iceland, Liechtenstein, and Norway.
Binance is accused of offering custody wallet services and virtual and “legal” currencies in Belgium from countries, not in the EEA, which is against Belgian law.
Belgium’s strict regulations prohibit non-EEA countries and persons from offering or providing virtual currency exchange or custody wallet services within its borders, even as a secondary or supplementary activity.
The Belgium Financial Market Authority (FSMA) has accused 27 companies of being “Binance operators” and of being involved in the provision of virtual currency exchange and custody wallet services in Belgium.
Binance is accused of offering custody wallet services and virtual and “legal” currencies in Belgium from countries, not in the EEA, which is against Belgian law.
The FSMA has found that 19 of the 27 companies it has identified as being part of the Binance ecosystem are based outside of the European Economic Area.
Binance has not been able to provide the FSMA with sufficient evidence to show that the legal entities that provide virtual currency exchange and custody wallet services in Belgium are based in the European Economic Area and are authorized to do so under their domestic laws.
Binance is disappointed with the FSMA’s decision but is confident that it will be able to work with the regulator to resolve the issue.
Binance is winding down its European operations, citing a desire for fewer regulated entities. Binance is preparing for MiCA and will focus on its larger, more established markets in France, Italy, and Spain.
Binance US and Binance filed new documents this week, alleging that the SEC’s allegations against them are “unsupported by evidence.”
