- The Belgian Financial Services and Markets Authority has ordered Binance to cease operations in the country.
- The regulator raised questions about the exchange’s offering of crypto services from non-EEA countries.
- The FSMA said the cryptocurrency exchange could face criminal charges for its actions.
- The exchange has been ordered to return all crypto assets belonging to Belgian customers.
The Belgian Financial Services and Markets Authority has ordered Binance to immediately cease operations in the country and cease providing cryptocurrency and custody services to Belgian customers. The order comes amid mounting legal troubles for the cryptocurrency exchange, which was indicted by the SEC earlier this month for illegally operating a stock exchange in the country.
Binance May Face Criminal Charges in Belgium
according to a Press release
Developed by the Belgian Financial Services and Markets Authority (FSMA), Binance Has been ordered to take immediate steps to return crypto assets belonging to Belgian customers. The regulator instructed cryptocurrency exchanges to contact their customers and accept any instructions related to the return of their assets. The FSMA accused Binance of violating a law that prohibits companies from non-EEA countries from offering services in Belgium.
Persons or companies subject to the laws of a non-EEA member state are prohibited from offering exchange services between virtual currencies and legal tender through professional activities (even if supplementary or auxiliary) in Belgium. currency or custodial wallet services.
According to the FSMA, EEA member states have submitted multiple requests to Binance for information related to its operations. The exchange reportedly failed to demonstrate that the crypto services offered in Belgium were provided by legal entities governed by countries in the European Economic Area. The regulator further stated that the Brussels Crown Prosecutor has been informed that Binance’s actions may constitute criminal offences.
As of the time of writing, Binance has yet to make an official response. However, CEO Changpeng Zhao shared his famous “4” tweet on Twitter, which he used to convey to followers of any ongoing FUD against his cryptocurrency company. “1, 2, 3…” Zhao tweeted.