Binance faces continued troubles as regulatory scrutiny grows

Belgium’s Financial Services and Markets Authority (FSMA) has dealt another blow to Binance.

In response to concerns raised by the FSMA, Binance has been ordered to halt its cryptocurrency services in Belgium immediately. The FSMA expressed apprehension about Binance offering exchange services and custody wallet services involving virtual currencies and legal currencies from non-European Economic Area countries within Belgium.

This regulatory action by Belgium adds to the mounting challenges faced by Binance, as regulatory scrutiny across Europe and the United States intensifies. The possibility of a domino effect looms large, with other regulators likely to delve into Binance’s operations. The exchange’s native token, BNB, has struggled to keep pace with the broader cryptocurrency market due to the increased regulatory scrutiny. Over the course of this week, BNB has recorded a modest 1.35% rise, currently trading at $247.

In an attempt to comply with local regulations, the exchange recently announced its decision to exit the Dutch market. As of July 17, 2023, existing Dutch resident users will only be able to withdraw their assets from the Binance platform. Furthermore, Binance has ceased accepting new users residing in the Netherlands with immediate effect.

These developments represent a significant setback for Binance, which has faced escalating scrutiny in recent weeks. The Securities and Exchange Commission (SEC) in the United States has already filed a lawsuit against the exchange, accusing it of substantial violations, particularly related to the trading of unregistered securities in an unlawful manner.