Belgium Orders Binance to Suspend Activities Amid Lawsuit with SEC
On Friday, Belgium’s financial authority ordered the world’s largest cryptocurrency exchange, Binance, to suspend some of its activities in response to the exchange’s lawsuit involving the US Securities and Exchanges Commission (SEC).
Yet Another Blow to Binance
The Belgian Financial Services and Markets Authority (FSMA) has ordered the immediate termination of all virtual currency exchange and custodial wallet services in the country.
The authorities have said that the ruling is applicable to restrictions that are mandated by the regulations of the European Economic Area. Even though Binance does not provide these services in Belgium, the Financial Services and Markets Authority (FSMA) has asserted that Belgian clients who use Binance.com are acting illegally.
The government mandate was issued at a time when cryptocurrency exchanges located in the United States, were intensifying their efforts to expand internationally, notably in Europe and Asia. However, it is anticipated that concerns over U.S. regulatory issues would continue at least until the presidential election in 2024.
The announcement read:
“The FSMA has decided to order Binance to cease, with immediate effect, offering or providing any exchange services in Belgium between virtual currencies and legal currencies, as well as custody wallet services.”
According to a statement that was released by the FSMA, a violation occurs when services that originate in countries that are not part of the European Economic Area are provided in Belgium.