In accordance with instructions from the local financial regulator, cryptocurrency platform Binance has been forced to suspend certain operations in Belgium. What does this mean for users?
Binance announces the end of certain services in Belgium
Two months ago, the Financial Services and Markets Authority (FSMA), Belgium’s financial watchdog, ordered cryptocurrency exchange Binance to stop providing certain services that did not comply with the country’s regulatory framework.
In response to this injunction, the platform this week sent an email to Belgian investors, informing them of the new provisions:
For my compatriots
Mail just received from Binance, it will no longer be possible to :
– buy and sell cryptos by card
– buy and sell in Fiat
– convert with your balance in Fiat
– Spot trade in Fiat
– Deposit Fiat
Fiat withdrawal ALWAYS available!!! pic.twitter.com/Ry5IJDT2Sl
– Monsieur-TK (@MiningTk) August 25, 2023
In practical terms, virtually all transactions involving fiat currency have been suspended until further notice. This means:
- Buying and selling cryptocurrencies by credit card and other methods with fiat currencies;
- All trading on fiat currency denominated pairs;
- Depositing fiat currency.
Thus, only withdrawals are still allowed for investors residing in Belgium:
Withdrawals in fiat remain available. We understand that these changes may have an impact on your experience on our platform, and we are committed to keeping you informed of any further updates. Our team is actively working to meet regulatory requirements to continue to meet the needs of our Belgian users. “
As a result, while this announcement does not imply any changes for all crypto/crypto transactions, Belgians will nevertheless have to turn to other providers if they wish to enter or exit the ecosystem.
With the entry into force of the MiCA regulation fast approaching, this measure may only be temporary, in view of the forthcoming arrival of Crypto-Asset Service Provider (CASP) status. Nonetheless, for the time being, it represents a further thorn in the side of the cryptocurrency giant.