Belgium’s Financial Services and Markets Authority (FSMA) has ordered the cessation “with immediate effect” of Binance’s operations in the central European country.
“The FSMA notes that Binance is offering and providing in Belgium currency exchange services between virtual and legal tender currencies, as well as electronic wallet, from countries that are not members of the European Economic Area [EEA],” the financial regulator has alleged. “FSMA has therefore ordered Binance to cease, with immediate effect, offering and providing any of these services in Belgium.”
The agency has explained that both natural and legal persons subject to legislation outside the European Economic Area are prohibited from providing these services as a professional activity in Belgium, “even if it is secondary or auxiliary”. Violating the decreed prohibition, FSMA clarifies, would constitute an offence punishable under Article 136 of the Belgian Law on the Prevention of Money Laundering and Financing of Terrorism.
According to the financial authority, Binance offers these services in Belgium through “operators” that are not specified in the terms and conditions of service. “There are 27 companies apparently involved in the technical or operational aspects of providing these services, of which 19 appear to be based outside the European Economic Area,” he added.
The FSMA has highlighted that, despite the information requests made to Binance, it “has not been able to demonstrate through due documentation or evidence” that the activity in Belgium of the aforementioned entities is authorized by another EEA member state.
image: Copyright: aleksandrasova
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