The FSMA, Financial Services and Markets Authority, found that “Binance is offering and providing currency exchange services between virtual and legal tender currencies, as well as electronic wallet, in Belgium from countries that are not members of the European Economic Area. For this reason, the agency ordered on Friday the immediate cessation of the offer and provision of these services in the territory.

The agency has explained that both natural and legal persons subject to legislation outside the European Economic Area are prohibited from providing these services in Belgium as a professional activity, “even if it is secondary or auxiliary”. Violating the decreed prohibition, clarifies the FSMA, would constitute an offense punishable by article 136 of the Belgian Law on the Prevention of Money Laundering and Terrorist Financing.

According to the financial authority, Binance offers these benefits in Belgium through “operators” that are not specified in the terms and conditions of service. “There are 27 companies apparently involved in the technical or operational aspects of providing these services, of which 19 appear to be based outside the European Economic Area,” he added.

The FSMA has highlighted that, despite the information requirements made to Binance, it “has not been able to demonstrate through proper documentation or evidence” that the activity in Belgium of the aforementioned entities is authorized by another EEA member state.

Legal issues Binance faces

This is not the first setback that Binance has faced, as the United States Securities and Exchange Commission (SEC), regulator of the markets in the country, accused Binance on June 5, its affiliated companies and its CEO, Zhao Changpeng, from violating US securities laws.

“We assert that Zhao and the Binance entities were not only aware of the rules, but consciously chose to circumvent them and put their clients and investors at risk in order to maximize their own profits,” the SEC said at the time.

In a case filed in federal court, the SEC argued that Binance operated unregistered, rigged stock trading controls, and sold unregistered securities. It also breached trust by diverting assets from its clients to Merit Peak Limited, also controlled by Zhao.

“Through thirteen counts, we find that Zhao and Binance entities concocted an extensive web of deceit, conflicts of interest, lack of transparency and premeditated violation of the legal order,” it added.

In addition, four days later, on June 9, Binance.US, the North American division of the platform, reported that it was suspending deposits denominated in US dollars and that on June 13, at the earliest, it would “pause” services on this platform. currency to operate exclusively with crypto assets. Binance.US justified this move on the “extremely aggressive and intimidating tactics” of the SEC.

“To protect our clients and our platform, we are suspending US dollar deposits today and notifying clients that our banking partners are preparing to pause fiat money (USD) withdrawal channels as soon as June 13, 2023, Binance.US tweeted, urging affected users to take “appropriate action.”

Source: dpa

(Reference image source: Kanchanara, Unsplash)

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La entrada Belgium ordered the immediate cessation of Binance’s activities in the country apareció primero en Bitfinance.

The risks that cryptocurrency transactions entail for those who do not have information about this market have led Belgium to join the supervision of all publicity on the subject.

The measure was taken a week ago and announced in a statement, stating that the Financial Services and Markets Authority will be the entity in charge of executing the order.

It means that any advertising or campaign aimed at inviting people and investing in cryptocurrencies must first be referred to the Financial Services and Markets Authority. In a period of ten days the result would be announced, which could be the intervention of said advertising.

The main reason for this measure is the security of those who seek to invest in cryptocurrencies but do not have sufficient knowledge about the risks of this market, which makes them potential victims of crimes related to these assets.

Regulators from the Financial Services and Markets Authority will study aspects of advertising such as the proper presentation of the risks involved in investing in cryptocurrencies.

M.Pino

With information from cryptocurrency specialized media

(Reference image source: Henri Buenen, Unsplash)

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La entrada Belgium to review all cryptocurrency advertising apareció primero en Bitfinance.