Following an order from the Belgian Financial Services and Markets Authority (FSMA), Binance, a cryptocurrency exchange, has announced that its Polish entity, Binance Poland sp. z o.o., will offer services to residents of Belgium.
In an announcement on August 28, Binance stated that its Polish entity, which was registered with Polish regulatory authorities in January, will adhere to regulatory obligations for Belgian residents seeking services on the exchange. Binance noted that some users might be required to provide documentation according to the Know Your Customer (KYC) requirements for Poland instead of Belgium.
This announcement comes about two months after Belgium’s financial regulator instructed Binance to cease offering crypto exchange and custody wallet services in the country due to violations of anti-money laundering and combating the financing of terrorism requirements. During that time, FSMA proposed that Binance could operate within 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. Poland is part of the EEA. Binance, a global cryptocurrency exchange operating across multiple countries through various entities, has encountered various regulatory issues since its inception. In July, the exchange suspended its services for Dutch users due to a lack of a virtual asset service provider license. Additionally, Binance, along with its US counterpart, Binance.US, and its CEO, Changpeng Zhao, are facing a lawsuit from the United States Securities and Exchange Commission.
The Markets in Crypto Assets legislation, a bill designed to establish a consistent regulatory framework for crypto assets among European Union member states, is projected to become effective in 2024 following approval by policymakers. Currently, the framework is undergoing a consultative phase to gather feedback on technical standards.
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