Binance Belgium Directed to Cease Operations
The Financial Services and Markets Authority (FSMA) of Belgium warned Binance about European Economic Area regulations violations.
In response to Binance's lawsuit against the US Securities and Exchanges Commission (SEC), the Belgian financial regulator ordered the exchange to cease certain operations on Friday.
Belgium's Financial Services and Markets Authority (FSMA) must promptly cease exchange services and custody wallet services between virtual and legal currencies.
According to the authorities, the order pertains to restrictions regarding European Economic Area regulations. The FSMA stated that Binance does not offer such services in Belgium but that Belgian patrons of Binance.com are in violation.
The order from the authorities came at a time when US-based cryptocurrency exchanges such as Coinbase and Gemini are making increasing efforts to expand internationally, particularly in Europe and Asia. However, regulatory concerns in the United States will likely persist until at least the 2024 presidential election.
Orders To Binance Belgium
According to a statement by the FSMA, the violation occurs when services from countries outside the European Economic Area are provided in Belgium. The assertion stated,
“The FSMA has decided to order Binance to cease, with immediate effect, offering or providing any exchange services in Belgium between virtual currencies and legal currencies, as well as custody wallet services.”
Meanwhile, Justin Slaughter, policy director at Paradigm, issued a warning about the SEC's final approval decision:
Sometimes applications are basically approved “absent an objection” by the staff at SEC.
— Justin Slaughter (@JBSDC) June 23, 2023
I wouldn’t assume this was an affirmative decision by the SEC staff and leadership here. https://t.co/tFgw5aJvmO
