Introduction

According to the Belgian Markets and Financial Services Authority, Binance, the largest cryptocurrency exchange globally, was found to provide non-European economic services area countries.

The regulator stated that individuals and companies operating in Belgium, but it does not belong to the European Economic Union area, they are prohibited from providing exchange services between virtual coins and fiat, as well as custodian wallet services.

Command for Binance

The Belgian Financial Services and Markets Authority (FSMA) has reportedly issued an order for Binance, the leading cryptocurrency exchange, to stop all virtual currency services within the country.

According to the regulator’s statement, the FSMA alleged that Binance was offering exchange services between virtual coins and legal tender, as well as custodian portfolio services, from non-European economists area (European Economic Area) countries.

The FSMA directive requires Binance to immediately stop offering or providing any such services in Belgium.

The regulator emphasized that individuals and companies governed by Belgian laws, who are not members of European Economic Area, is prohibited from participating in Territory of exchange services involving virtual coins and fiat, as well as custodian wallet services.

Non-compliance with these regulations may result in criminal penalties, as reported by the FSMA.

Tiger’s organization comes after Johan van Overtveldt, member of European Parliament and former finance minister of Belgium, stirred up controversy with a tweet connection for EU-wide ban on digital currencies.

Go to Twitter on On March 17, Van Overtveldt cited the ongoing disorder in the banking sector as a reason to strictly prohibit digital currencies, arguing that they do not provide any economic or social value.

Mounting Regulatory Challenges

Binance, the prominent cryptocurrency exchange, is facing mounting regulatory challenges. It also faces allegations from the US Securities and Exchange Commission (SEC) regarding possible violations of securities law.

Stock exchange problems escalated with revelation of an ongoing investigation by the French authorities.

Amidst these law battles, Binance made the decision to withdraw its services from the European economic markets area (European Economic Area), including the Netherlands and Cyprus citing regulatory issues as a priority reason for her departure.

Intense scrutiny surrounding Binance has put the exchange in the spotlight, raising concerns about its compliance with Securities regulations and ability to navigate complex landscapes of international financial systems.

The allegations have been confirmed by the Securities and Exchange Commission need for Binance to address potential legal violations and cooperate with regulatory authorities in order to restore confidence and maintain its position in competitive cryptocurrency market.