The FSMA orders Mexc Global LTD (www.mexc.com) to: cease providing all custodian wallet services in Belgium and to cease all distribution to retail clients in Belgium of financial products the return on which depends, directly or indirectly, on virtual money.
Persons or firms governed by the law of a country that is not a member of the European Economic Area are prohibited from offering or providing, within Belgium, by way of a professional activity – even if supplementary or ancillary – exchange services between virtual currencies and legal currencies or custody wallet services.
Failure to comply with this prohibition is subject to criminal sanctions pursuant to Article 136 of the Belgian Law on the prevention of money laundering and terrorist financing.
The FSMA takes the view that by offering such services in Belgium from countries that are not members of the European Economic Area, namely the Seychelles, Mexc Global LTD is in violation of that prohibition.
Moreover, it is prohibited to distribute, on a professional basis, to one or more retail clients, a financial product the return on which depends, directly or indirectly, on virtual money.
The FSMA has serious indications that Mexc Global LTD distributes financial products in Belgium the return on which depends, directly or indirectly, on virtual money.
That is why the FSMA decided on 23 July 2024 to order Mexc Global LTD to:
- cease providing all custodian wallet services in Belgium. To this end, Mexc must transfer the wallets of its Belgian clients to a custodian wallet provider established within the European Economic Area that is duly authorized to carry on this activity,
- cease all distribution to retail clients in Belgium of financial products the return on which depends, directly or indirectly, on virtual money.