Belgium’s financial regulator, the Financial Services and Markets Authority (FSMA), has instructed Binance to stop offering crypto exchange and custody services with immediate effect in the country.
The FSMA accused Binance of violating Belgium’s AML/CFT laws by providing crypto-related services from non-European Economic Area (EEA) countries.
According to the FSMA, Binance operated 19 companies outside the EEA involved in its operations or technical support that did not appear in Belgium users’ terms and conditions.
Despite several requests for information, Binance failed to demonstrate that its virtual currency exchange and custody wallet services are carried out by a legal entity authorized by its home member state to do business within Belgium.
As part of the order, Binance must contact its Belgium-based clients and return all crypto and private keys it holds.
The FSMA’s move against Binance amid rising regulatory scrutiny follows similar actions taken by other national regulators such as the US Securities and Exchange Commission.