Recently, Belgium ordered Binance, one of the top cryptocurrency exchanges in the world, to stop offering its services related to digital assets there. Due to regulatory concerns, the Federal Services and Markets Authority (FSMA) has taken action and required Binance to comply right away.

According to the FSMA’s press statement, Binance is breaking the law by providing cryptocurrency services to nations outside the European Economic Area. The press release states that it is expressly forbidden for organizations regulated by non-European Economic Area nations to operate in Belgium or offer services related to digital assets. Binance could face criminal penalties if it disregards this directive.

Absence of Compliance and Support

Binance has refused to give documentation to back up its cryptocurrency offerings in Belgium despite repeated demands for information. The FSMA stressed that Binance has not shown that it is based in the European Economic Area and that it is legitimately permitted to offer these services in Belgium under Belgian domestic legislation. The FSMA decided to enforce the termination of Binance’s crypto services in the nation as a result of this lack of cooperation.

An Answer from Binance

Regarding the order from Belgium, Binance has not yet made any official statements. Users and industry watchers are waiting on the exchange’s answer because it has not yet commented on the issue.

The FSMA’s directive to Binance to stop offering cryptocurrency services in Belgium serves as a reminder of the increased attention and regulatory difficulties faced by cryptocurrency exchanges globally. This action underlines how crucial it is to abide by local laws and keep within the restrictions imposed by regulatory bodies. While the cryptocurrency industry constantly observes the developments surrounding this regulatory action, it is unclear how this decision will affect Binance’s operations and its future engagement in Belgium.