Binance reopens Belgium operations after three months of suspension by FSMA

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.

Also Read: Binance ordered to cease crypto services in Belgium over allegations of violation of law

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.

With this report, the country’s residents can now register and access Binance products and services in Belgium. Beyond that, some other offerings have also been restored, unique to users that accept the “Terms of Use,” according to the announcement. The exchange also thanked users for their patience and continued support.

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.