Crypto platform Binance is no longer allowed to offer virtual coins in Belgium by the Belgian financial regulator FSMA. Binance offers custodial wallets from countries outside the European Economic Area, which is prohibited in Belgium according to the FSMA.
The FSMA believes that Binance uses so-called Binance Operators these are companies that take care of technical aspects of the platform’s services. However, according to the FSMA, some of these companies are located outside the European Economic Area and, according to the regulator, are therefore not authorized to offer Binance services within Belgium.
Binance filed to get more information, but the company was unable to refute the practices. The Belgian regulator is now ordering Binance to stop its activities. The crypto platform must also inform all Belgian customers of the decision and the cryptographic keys and/or all virtual currencies must be returned, or transferred to an entity that is allowed to operate within the European Economic Area.
Binance stops also in the Netherlands as of July 17 offering its crypto trading platform. The platform was unable to register with De Nederlandsche Bank. Binance has previously been fined a fine of millions from De Nederlandsche Bank because the platform had not registered, but did offer its services. In the Netherlands, companies that offer crypto services must register with DNB since 21 May 2020. This falls under the Wwft, the Money Laundering and Terrorist Financing Prevention Act.
