Bit4You: FSMA had found irregularities before the platform was shut down

The Belgian regulator declares to have notified its intention from refuse the application for registration from Bit4You and to have noted irregularities before the crypto exchange do hangs his services.

In a statement issued Monday, the Belgian Financial Services and Markets Authority reminds that the activity of Virtual Asset Service Provider (VASP) is today ” unregulated “, except for anti-money laundering and terrorist financing prevention purposes.

The regulator then returns to the case Bit4You, a cryptocurrency exchange platform founded in Brussels in 2018 that suspended its services last month.

The FSMA First, it states that Bit4You had to change its entire governance structure as a result of “ irregularities observed ” in his application for registration.

Following Coinloan’s subsequent demise, Bit4You suspended operations and ultimately withdrew its application for registration on May 2, 2023. As a result, it automatically lost the benefit of the provisional authorization. The FSMA had previously notified Bit4You of its intention to refuse its application for registration and informed the Public Prosecutor of the irregularities found in the former management,” the FSMA wrote.

Recently, The Echo reported that no Belgian crypto company had yet received final approval – only provisional authorizations – under the licensing system launched in the spring of 2022.

“More comprehensive, and in particular prudential, rules regarding crypto-currency activity will be introduced by the European MiCA regulation, which is expected to come into force from the beginning of 2025,” FSMA adds.

In a blog post published Friday, Bit4You declares to have asked the provisional administrator to CoinLoan to recover “as soon as possible” the cryptocurrencies deposited with its Estonian partner.

“Bit4you S.A. has withdrawn, by letter dated May 1, 2023, its application for registration as a VASP and notes that this withdrawal has taken effect as of May 2, 2023. Bit4you has decided, with a view to continuing to take steps to safeguard the interests of its customers and with the aim of continuing to ensure equal treatment of its customers, to ask the Corporate Court to appoint a provisional administrator to ensure the orderly resolution of Bit4you’s commitments”, the Brussels exchange also states.

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