- Binance Exchange has reopened registrations for its Belgian community to access its products and services.
- It comes three months after the FSMA ordered the platform to cease operations in Belgium citing law violations around EEA.
Binance, the largest exchange by trading volume, has resumed operations in Belgium, around three months after suspension. An earlier report indicated that the Belgian regulatory body, Financial Services and Markets Authority (FSMA), instructed Binance to halt operations in the country beginning June 23 for violating laws.
Binance resumes operations in Belgium
Binance was accused of breaking regulations imposed by the FSMA in Belgium, with the regulatory body calling out the platform for “serving customers in the country from areas listed outside the European Economic Area (EEA).”
The services cited comprised virtual and legal currencies and custody wallet services, with the FSMA reiterating that the Belgian laws stipulated that “no country outside the EEA was allowed to engage in offering the aforementioned services.” Breaking either of these laws would warrant criminal sanctions as the country and its regulatory bodies strived to prevent financial crime, including laundering money or funding terrorists.
Beyond the cease and desist order from the FSMA to Binance, the Belgian regulator instructed that Binance returns to the Belgian clients in question all cryptographic keys and/or all virtual currencies that Binance holds for their account with immediate effect. The alternative was to transfer the assets to organizations under the EEA umbrella, possibly a member state and duly authorized by their domestic law to carry out such activities, including within Belgium.
The incident saw the platform push its users to the exchange’s outlet in Poland as it maneuvered the regulatory bind. Binance’s Polish arm took charge as the main service provider owing to the fact that the exchange had secured operating licenses and therefore recognized as a registered entity in Poland.
Nevertheless, in a recent development, the platform has announced that operations have resumed, with customers getting the green light to actively deposit and withdraw.
We have been overwhelmed by your show of support these past few months, by continuously standing by us.— Binance België (@binanceflemish) September 25, 2023
Your patience during these recent changes has been truly appreciated. Thank you for standing by us and being a valued member of our community.
Your Binance Team
Meanwhile, despite positive developments in Belgium, Binance exchange continues to remain within the tight web of the United States Securities and Exchange Commission (SEC), among other regulatory bodies like the Commodities Futures Trading Commission (CFTC) and the US Department of Justice (DOJ). Both the platform and its CEO Changpeng Zhao (CZ) are the subjects of an ongoing investigation, with demonstrated intentions to protect users from a possible fallout.
CZ has maintained his stance amid all the chaos, pleading not guilty and urging users to avoid succumbing to the whim of fear, uncertainty, and doubt.
Cryptocurrency metrics FAQs
What is circulating supply?
The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. Since its inception, a total of 19,445,656 BTCs have been mined, which is the circulating supply of Bitcoin. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.
What is market capitalization?
Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value. For Bitcoin, the market capitalization at the beginning of August 2023 is above $570 billion, which is the result of the more than 19 million BTC in circulation multiplied by the Bitcoin price around $29,600.
What is trading volume?
Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.
What is funding rate?
Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.
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