Crypto exchange Binance has set up a dedicated Polish entity that will comply with Belgian regulations to cater to its Belgian clients.
Belgians To Use Binance Poland
After facing regulatory roadblocks, Binance has cracked the code on how to continue serving its Belgian clients. The leading cryptocurrency exchange has recently unveiled its latest entity, which will serve such clients while complying with Belgian regulatory guidelines.
In a blog announcement released on Monday, the team revealed that it will be using its Polish arm to cater to Belgian clients.
The team wrote,
“We are pleased to announce that Binance Poland sp. z o.o. is now the entity that provides Binance services for Belgian residents. By doing this, Binance ensures that it complies with its regulatory obligations and can continue to provide services to Belgian users.”
FSMA Ordered Operations Halt
The move to refocus a part of the firm’s Poland arm for Belgian users was taken after significant pushback from the country’s financial services regulatory. Like regulators in several other countries, in June 2023, Belgium’s Financial Services and Markets Authority (FSMA) ordered the company to halt all digital asset services being provided in the country.
The FSMA said,
"Binance is offering and providing exchange services in Belgium between virtual currencies and legal currencies, as well as custody wallet services, from countries that are not members of the European Economic Area…The FSMA has therefore ordered Binance to cease, with immediate effect, offering or providing any and all such services in Belgium."
New KYC For Registered Users
To tackle this matter and maintain regulatory compliance, the service provider is redirecting its Belgian customers to the Polish branch, where it is a registered virtual assets service provider (VASP).
The Belgian customers will need to agree to a new Terms of Use for Binance Poland to be able to access the trading platform once again. Registered users might need to provide further KYC documents to meet a new regulatory checklist, which will be communicated to the affected customers in due time.
Binance’s Regulatory Troubles
Belgium is just one of the many countries that are concerned about Binance and its regulatory compliance. The crypto agency is already under tremendous fire from the U.S. Securities and Exchange Commission (SEC) that has launched a lawsuit against it in a bid to protect U.S. customer funds.
The Department of Justice (DOJ) has also pursued legal actions against the crypto exchange, claiming that it has been supporting sanctioned banks in Russia. However, it is clear that the firm is eager to appease regulatory bodies, as it has recently imposed strict restrictions on peer-to-peer trading for Russian users and is considering exiting the market entirely.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
