Binance Ensures Services to Belgian Users Persist Through Polish Entity

Following an injunction from the Belgian Financial Services and Markets Authority (FSMA), Binance, a prominent cryptocurrency exchange, has announced its strategic move to maintain uninterrupted services for Belgian users. The exchange stated that its Polish entity, Binance Poland sp. z o.o., which was officially registered with Polish regulatory authorities back in January, would now cater to the needs of residents in Belgium, adhering to pertinent “regulatory obligations.”

In their recent communication on August 28, Binance indicated that residents of Belgium seeking services on their platform might be required to submit documentation aligned with the Know Your Customer (KYC) norms established by Poland, rather than those of Belgium.

The decision came about two months subsequent to the directive issued by Belgium’s financial regulatory body, instructing Binance to cease its provision of cryptocurrency exchange and custody wallet services within the country. The FSMA’s action was prompted by alleged infractions against the nation’s Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements. During that period, the FSMA suggested that Binance could potentially continue its operations in Belgium through a “legal entity governed by the law of another member state of the European Economic Area [EEA] that is duly authorized by its home member state.” The European Economic Area encompasses countries such as Poland.

Binance, a global cryptocurrency exchange with a significant presence across numerous jurisdictions via distinct entities, has encountered its fair share of regulatory challenges since its inception. In July, the exchange ceased services for users located in the Netherlands due to its inability to secure a virtual asset service provider license. Furthermore, Binance, its subsidiary Binance.US, and its CEO Changpeng Zhao are currently facing legal action from the United States Securities and Exchange Commission (SEC).

Looking ahead, the Markets in Crypto Assets legislation looms on the horizon. This legislative proposal aims to establish a harmonized regulatory framework for crypto assets across European Union member states. The legislation is poised to take effect in 2024, subsequent to its endorsement by policymakers. Currently, the framework is navigating through a consultative phase, during which technical standards are being refined through stakeholder feedback.

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