Regulators around the world continue to target the crypto exchange giant Binance.
Belgium's financial regulator, the Financial Services and Markets Authority (FSMA), has directed a sweeping injunction towards the renowned cryptocurrency platform, Binance.
The order requires the immediate cessation of all crypto exchange and digital wallet services the company offers within the country.
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The FSMA expressed its concerns in its notice issued on June 23rd.
The regulator voiced apprehension regarding Binance's service provision methodology, which incorporated countries not associated with the European Economic Area (EEA).
According to the FSMA, Binance violated Belgian laws formulated to combat illicit financial activities such as money laundering and terrorist funding. Consequently, the agency demanded an immediate halt of all related services in Belgium.
The FSMA further shed light on Binance's intricate operational structure, revealing the company's control over approximately 19 entities outside the EEA.
These entities were involved in operational or technical assistance but remained undisclosed in the terms and conditions presented to Belgian clients during service registration. Despite repeated information requests from the regulator, Binance failed to identify the functions behind offshore companies' operations.
According to Belgium's financial regulator, while Binance was granted multiple opportunities to clarify its business model, it could not provide satisfactory evidence supporting the legality of its crypto exchange and wallet services in Belgium.
In tandem with the directive, the FSMA mandated Binance to inform all Belgian customers about the situation and return any stored cryptocurrencies and private keys.
A spokesperson for Binance expressed the company's disappointment with the decision. The company stated that it would investigate the FSMA's notice.
However, the FSMA is not the only regulatory entity raising concerns about Binance's operations. The company is under scrutiny from other national regulatory bodies, including the US Securities and Exchange Commission.
FSMA order serves as a stark reminder to all players in the crypto industry to prioritize their legal obligations to protect both their operations and their clients.
