After months of tension between the Belgian Financial Services and Markets Authority (FSMA) and the cryptocurrency industry, the regulatory agency has ordered Binance to halt all cryptocurrency exchange services in Belgium.
In its statement, the FSMA cited Article 136 of Belgium’s Anti-Money Laundering and Counter-Terrorist Financing Law. This provision imposes criminal penalties on organizations that provide the aforementioned services in Belgium from non-European Economic Area operating bases.
The FSMA stated that they had repeatedly requested Binance to provide information on the origin of the mentioned services. Despite all the requests, Binance did not provide the requested documentation proving that the entities are operating legally in Belgium.
In addition to ceasing operations in Belgium, the FSMA has demanded that Binance take further measures. For instance, Binance must return the cryptographic keys and cryptocurrencies held by the exchange for Belgian customers. Alternatively, the exchange can transfer those assets to entities operating legally in Belgium or another European Economic Area member state.
The FSMA stated that if Binance chooses the second option, they must “take all necessary precautionary measures” to ensure the security of those money transfer transactions.
The FSMA is the latest regulatory authority to push back against Binance regarding cross-border regulations. However, examining the FSMA’s record, its latest action is clearly part of long-term efforts to combat cryptocurrencies.
Belgium joins France in the attack against Binance
The action this week in Belgium is part of a series of events disrupting Binance’s operations. The decision by FSMA comes just days after Binance faced difficulties in France. The exchange has been under investigation for allegations of “serious money laundering” and “providing unauthorized cryptocurrency services.”
In particular, officials in France have criticized Binance for not complying with customer due diligence requirements. This action of disruption aims to ensure that malicious actors do not utilize its platform and services for illicit transactions.
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