Belgian authorities, led by the Financial Services and Markets Authority (FSMA), have moved decisively to halt Binance operations in Belgium with immediate effect. The regulator announced that Binance is active in Belgium by offering currency exchange services between virtual currencies and fiat money, along with electronic wallet services, even when dealing with counterparties from outside the European Economic Area, including non-member states. In response, the FSMA has mandated that Binance stop providing and offering any of these services in Belgium right away, signaling a firm stance against non-compliant crypto activities within its jurisdiction.
The FSMA further clarified that individuals and entities, whether natural or legal persons, who operate from outside the European Economic Area are barred from delivering these services as a professional activity in Belgium, even if such activities are performed as a secondary or ancillary function. The regulator warned that breaching the prohibition constitutes a criminal offense, with penalties aligned to the Belgian legal framework for money laundering and terrorist financing prevention. This move underlines Belgium’s commitment to tightening controls on crypto platforms and ensuring that only licensed, compliant providers operate within its borders.
For observers in Canada and the United States, the Belgian action reflects a broader trend in which regulators are increasingly scrutinizing cross-border crypto services and insisting on strict compliance with local anti-money laundering rules. The immediate cessation order against Binance serves as a reminder that crypto platforms must align their international operations with each country’s regulatory expectations. In practical terms, Belgian residents will be limited from using certain Binance services, while non-residents or entities may face restrictions when attempting to engage with these offerings from Belgium. The enforcement posture taken by the FSMA highlights how regulators are converging on enforcement and risk management measures, including continuous monitoring, licensing prerequisites, and robust know-your-customer procedures to prevent illicit financial activity. Given the evolving regulatory landscape in North America, investors and users should stay informed about how similar rules could affect cross-border access, platform availability, and compliance obligations across borders. The Belgian case may influence how other jurisdictions assess service provision, digital asset custody, and the treatment of currency exchanges that bridge virtual and traditional financial systems, encouraging platforms to implement harmonized compliance frameworks while maintaining transparency about geofenced access and regional restrictions.