Belgium’s FSMA regulator issued an order on Friday, demanding that Binance, the world’s largest cryptocurrency exchange, immediately halt all virtual currency services in the country.
The move adds to the mounting pressure on Binance, which has faced scrutiny from regulators aiming to curb money-laundering activities.
FSMA’s Order to Cease Binance Services in Belgium
The Financial Services and Markets Authority (FSMA) in Belgium has taken a decisive step in reining in Binance’s operations within the country.
In response to Binance’s offering of exchange services and custody wallet services involving virtual currencies and legal currencies from non-European Economic Area countries, the FSMA has ordered the immediate cessation of such services in Belgium.
Furthermore, the FSMA highlighted the reasons behind its action, citing concerns related to regulatory compliance and the potential for illicit financial activities.
Escalating Regulatory Scrutiny and International Impact
Binance, founded by Changpeng Zhao in Shanghai in 2017, has grown to become a dominant player in the cryptocurrency industry. However, as its market influence expands, so does the scrutiny it faces from regulators worldwide.
Notably, recent developments in the United States and France have further amplified the challenges.
Earlier this month, Binance and Binance.US entered into an agreement with the U.S. Securities and Exchange Commission (SEC) to safeguard U.S. customer assets, until the resolution of a sweeping lawsuit filed by the SEC.
French authorities are also probing Binance, adding to the growing list of jurisdictions scrutinizing the exchange’s activities. Moreover, Binance’s decision to withdraw from the Dutch market was prompted by its inability to fulfill the registration requirements necessary to operate as a virtual asset service provider.
By examining these regulatory actions and international investigations, it becomes evident that the company’s operations are under increasing scrutiny. It necessitates significant compliance measures to address the concerns of regulators worldwide.
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