Belgium's oldest crypto exchange, Bit4You, was already facing troubles even before it suspended operations in April of 2021. The country's financial regulator, Financial Services and Markets Authority (FSMA) has stated that the irregularities noted in regard to the company's management and the assessment of money-laundering rules, forced the exchange to modify all its governance structures.

Bit4You said in an April 26 blog post that it was suspending activities as a result of the collapse of one of its service providers, CoinLoan, which held many of their funds. Following this, the crypto exchange itself filed for administration in Belgium's court.

Belgium's crypto registration regime took effect in 2022, but due to their already existing license, exchanges such as Bit4You were given the opportunity to present their full application while still being considered. However, the FSMA notified Bit4You before they had even asked to withdraw their certificate on May 2, that they would refuse their request for registration. In response, the exchange chose to suspend their activities.

Although the circumstances surrounding Bit4You's suspension remain unclear, this event once again emphasizes the importance of meticulously assessing companies before investing, as well as the need for exchanges to take legal compliance and user protection very seriously.

Though the exact details surrounding the events at Bit4You remain unknown, it is safe to say that the situation serves as yet another lesson to be taken from all users of the crypto space. Investing in any asset requires careful assessment of the company involved and diligent security practices in order to protect user funds. Additionally, companies begin to take legal compliance more seriously as it is necessary for the continued growth of the crypto-space.



Other News from Today