Binance Allows Service to Belgian Residents via Polish Entities

Binance announced that entities in Poland will provide services to the Belgian population. (photo: twitter @binance)

JAKARTA - Following an order from the Belgian Market and Financial Services Authority (FSMA), crypto exchange Binance announced that an entity in Poland will provide services to residents of Belgium.

In an announcement on August 28, Binance said that Binance Poland sp. z o.o. — an entity the exchange registered with Polish regulatory authorities in January — will comply with “regulatory obligations” for Belgian residents seeking services on the exchange.

According to Binance, some users may need to submit documents according to Know Your Customer (KYC) requirements for Poland rather than Belgium.

The announcement comes about two months after the Belgian financial regulator ordered Binance to stop offering its crypto exchange and security wallet services, citing violations of the country's Anti Money Laundering and Combating the Financing of Terrorism requirements.

Back then, FSMA implied that Binance could operate in Belgium through “a legal entity governed by the laws of another European Economic Area [EEA] member country that is licensed by its home member country.” Poland is included in the EEA.

As a global crypto exchange operating in multiple countries through various entities, Binance has faced a number of regulatory issues since its launch. The crypto exchange suspended its services for Dutch users in July, citing failure to obtain a virtual asset service provider license.

In addition, Binance, Binance.US, and Binance CEO Changpeng Zhao are facing a lawsuit from the US Securities and Exchange Commission.

The Law on Crypto Asset Markets, a law that aims to establish a consistent regulatory framework for crypto assets among European Union member states, is expected to enter into force in 2024 after approval by policy makers. The framework is currently going through a consultation phase for feedback on technical standards.