FSMA orders Binance to cease immediately all offers of virtual currency services in Belgium

The FSMA has ordered Binance, a virtual currency service provider, to immediately stop offering its services in Belgium.
The FSMA found that Binance was providing exchange services between virtual currencies and legal currencies, as well as custody wallet services, from countries outside the European Economic Area. Such activities are prohibited for entities governed by non-EEA countries. Failure to comply with this prohibition results in criminal sanctions pursuant to Article 136 of the Belgian Anti-Money Laundering Law.
Binance has been unable to demonstrate that the services it offers in Belgium are provided by entities authorized within the EEA. The FSMA has also demanded that Binance return cryptographic keys and virtual currencies to its Belgian clients or transfer them to authorized entities within the EEA.
The FSMA is acting to protect consumers and emphasizes that, although the virtual currency sector remains unregulated, anti-money laundering and terrorist financing measures are in place. The EU’s MiCA Regulation will introduce more comprehensive rules governing crypto-assets and enter into force from January 2025.