The Belgian Financial Services and Markets Authority (FSMA) has issued an order to cryptocurrency exchange Binance, instructing it to cease all cryptocurrency trading and custodial wallet services in Belgium. The FSMA stated that Binance violated Belgian laws related to anti- money laundering and countering the financing of terrorism by offering these services from non-European Economic Area (EEA) member states. The financial watchdog emphasized that Binance, which controls approximately 19 companies outside the EEA, had not provided satisfactory responses to its requests for information regarding the services offered in Belgium. Binance is required to contact its customers in Belgium, return all cryptocurrencies and private keys held by the exchange, and comply with the FSMA's order.
Binance expressed disappointment in the FSMA's decision and stated that it plans to review the regulator's notice. The FSMA's action against Binance is part of a broader trend of national regulators taking measures against the exchange, with the US Securities and Exchange Commission (SEC) currently pursuing a lawsuit against Binance and its US-based entities for alleged securities law violations. It is worth noting that a member of the Belgian parliament announced plans to receive government salaries in Bitcoin in January 2022.
Overall, the FSMA's order requires Binance to halt its cryptocurrency services in Belgium due to alleged non-compliance with anti-money laundering laws, adding to the regulatory challenges faced by the exchange in various jurisdictions.
