30-06-2023

The Belgian financial watchdog FSMA announced in its communication last Friday that the global crypto-platform Binance should cease all its operations in Belgium, as the platform has continued to operate illegally in the country since it started offering its services. The FSMA is certainly not the first authority to act with a ban, as several other European and US regulators have already taken the crypto-giant to task. The US stock market regulator SEC, for instance, sued the platform earlier this month for non-compliance with US legislation.

According to the relevant regulatory framework, providers of platforms that exchange crypto-currencies into classic currencies or wallets are required by law to establish themselves within the European Economic Area, where Binance offers its services mainly from its offices outside the European region. The FSMA states that it has offered the crypto-giant the option of adapting to the current rules on several occasions, but indicates in its communication last Friday that the Cayman Island-based company did not sufficiently comply. Accordingly, the regulator has imposed a complete ban on all its activities on the crypto-trader and is also demanding the full refund of all virtual currency and/or crypto keys to its users in Belgium.

In addition to the lack of branches within the EEA, the FSMA states that Binance could potentially be criminally prosecuted under the provisions of the Belgian anti-money laundering law, as non-compliance with these obligations also constitutes a crime. Accordingly, the FSMA subsequently transferred the file to the public prosecutor's office.

Binance expressed its disappointment on Saturday and says it intends to cooperate with the relevant regulators in Belgium and worldwide to still be able to come into compliance with its obligations. In any case, the final blow in Belgium seems to have already been issued.

If you have any questions or want more information regarding the regulatory framework of crypto-assets, please do not hesitate to contact Dieter Veestraeten (dve@astrealaw.be).