Binance back in Belgium after regulatory hurdles cleared
Binance has resumed accepting registrations and providing access to its products and services in Belgium. This decision comes three months after the country’s Financial Services and Markets Authority (FSMA) had instructed Binance to cease offering its services in Belgium.
The specific changes that allowed the resumption of services in Belgium have not been disclosed, but Binance has been actively working to comply with evolving global regulatory frameworks. This includes the European Union’s forthcoming Markets in Crypto-Assets (MiCA) legislation scheduled to take effect in June 2024. The crypto giant has now made various products and services accessible to Belgian users who have accepted the new Terms of Use.
In June, the FSMA raised concerns about violations of anti-money laundering and counter-terrorism financing laws. The regulator sought information from Binance through multiple inquiries, primarily concerning the source of the services being provided.
Despite these inquiries, Binance was unable to satisfy the FSMA that its entities were operating in compliance with Belgium’s legal framework, leading to the order to cease services in the country. As a result, it initially redirected Belgian users to its Polish-registered subsidiary, Binance Poland sp. z o.o., to continue serving them.
Binance did not contest the FSMA’s findings. In response to the its actions, a Binance spokesperson stated in June, “We are reviewing the details of their notice and will continue to work collaboratively with regulators in Belgium and around the world in compliance with our obligations.” The FSMA also confirmed that Binance complied with the injunction issued in June, which aimed to prevent Binance from conducting any business in Belgium from outside the European Economic Area (EEA), as it violated Belgian law.
Elsewhere, Binance withdrew its application for a crypto license in Germany. This move came as the crypto giant continues to reassess its immediate expansion plans in response to the tough regulatory stance towards the whole industry.
Binance’s decision to withdraw its application for a crypto license in Germany was also part of a broader exit strategy from various markets, including the UK, Austria, Belgium, and the Netherlands. Additionally, the exchange’s U.S. arm is currently facing a lawsuit from regulators for operating an unregistered exchange.
Binance stated that it will not disclose specific details of its conversations with regulators in Germany. However, the exchange affirmed its commitment to comply with BaFin’s requirements.
Binance described the process as detailed and ongoing, emphasizing that it is confident in having the necessary team and measures in place to address the regulatory concerns and navigate the situation.
