On June 23, 2023, Belgium’s Financial Services and Markets Authority (FSMA) took action against Binance. The FSMA ordered Binance to halt all digital currency services in Belgium due to its failure to obtain the required registration. This action was taken as a result of Binance’s violation of Belgian law.
Decision of the FSMA is part of a broader trend seen globally, with regulators cracking down on cryptocurrency exchanges. Several other countries, such as the United Kingdom, Japan, and Thailand, have also ordered Binance to cease operations.
In response to the FSMA’s order, Binance stated its commitment to working with regulators worldwide. The company is currently engaging with the FSMA in an attempt to secure the necessary registration. However, it remains uncertain when or if Binance will be able to resume its operations in Belgium.
This setback is for Binance, the world’s largest cryptocurrency exchange in terms of trading volume. It reflects regulators’ more cautious approach to the cryptocurrency industry.
Here are some of the reasons why the FSMA ordered Binance to stop operating in Belgium:
- Binance did not have the necessary registration to operate in Belgium.
- Binance was offering services that were not authorized by the FSMA.
- Binance was not complying with Belgian anti-money laundering regulations.
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