BREAKING: Binance Was Ordered To Stop Service Immediately In Belgium
- Belgium’s FSMA has ordered Binance to immediately stop servicing local consumers in Belgium.
- The exchange is facing legal issues, including a complaint by the US Securities and Exchange Commission alleging 13 violations.
- It also has withdrawn from several European Economic Area countries due to regulatory concerns.
According to a Friday notification, Belgium’s Financial Services and Markets Authority (FSMA) has ordered the troubled cryptocurrency exchange Binance to immediately stop servicing local consumers.
Binance is marketing and delivering exchange services in Belgium between virtual currencies and legal currencies, as well as custodial wallet services, from nations that are not members of the European Economic Area, according to Belgium’s top market regulator.
“The FSMA has therefore ordered Binance to cease, with immediate effect, offering or providing any and all such services in Belgium,” according to the notification.
This comes at a time when Binance Global and Binance.US are embroiled in legal issues. On June 5, the US Securities and Exchange Commission filed a complaint against the exchange, alleging 13 different things. According to one of the lawsuit’s accusations, monies from these companies were combined into an account managed by Merit Peak Limited that included Changpeng Zhao.
Another claim is that the US subsidiary used a hidden Market Maker (MM) named Sigma Chain, which is also controlled by CZ. As a result, the SEC first recommended freezing all Binance.US assets, but the two parties eventually struck a compromise.
After that, the cryptocurrency market began to tremble. Binance.US also had issues after delisting more than 100 trading pairs from the Advanced Trading interface and discontinuing the OTC service. Simultaneously, the values of BTC, ETH, and BNB on the platform started to diverge from the global average.
The exchange is also under regulatory scrutiny as it fights US Securities and Exchange Commission claims that it violated securities laws and was recently reported to be the focus of a French inquiry. Over regulatory concerns, the exchange has also withdrawn from European Economic Area countries such as the Netherlands and Cyprus.
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