Bit4You Affairs in Doubt Even Before CoinLoan Collapse, Belgian Regulator Says
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Loading... - Celine Dossens
- 11 May 2023
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Bit4You, the most ancient cryptocurrency exchange in Belgium, had been facing the threat of losing its registration or being prosecuted even prior to its announcement of halting activities in April, as per the statement made by the country's financial regulator on Monday.
The collapse of Bit4You's service provider CoinLoan, which held a significant portion of its funds in Estonia, was cited as the reason for the suspension of activities in April. However, Belgium's Financial Services and Markets Authority (FSMA) disclosed today that there may be more to the story.
The regulator stated that "FSMA had previously informed Bit4You of its intention to refuse its request for registration," even before the crypto exchange sought to have its provisional registration withdrawn on May 2. FSMA had also "informed the public prosecutor of irregularities noted in regard to the former management" while scrutinizing the company's application under anti-money laundering regulations. Consequently, the company was "forced to modify all its governance structures" in response to the regulator's findings.
Belgium's crypto registration protocol was enacted in May 2022, but existing companies such as Bit4You were allowed to keep their provisional licenses while their complete application was being considered.
On April 26, Bit4You stated in a blog post that the suspension of activities was due to the insolvency of CoinLoan, and the company subsequently filed for administration in a Belgian court.
