Following its ban from Belgium in June, the world’s largest cryptocurrency exchange platform, Binance, has resumed its operations in the country by redirecting its customers through its affiliated entity in Poland.
Binance has announced that its Polish division will adhere to the required “regulatory obligations” for Belgian residents. This move ensures that customers from Belgium can now enjoy uninterrupted access to the cryptocurrency exchange platform.
However, to meet regulatory guidelines, Belgian clients must adhere to the terms and conditions set forth by Binance Poland. This might encompass submitting specific KYC (Know Your Customer) documents to satisfy the stipulations outlined by Polish regulatory authorities.
This development comes approximately two months after Belgium’s Financial Services and Markets Authority (FSMA) mandated the suspension of all Binance services within the nation. This action was taken due to perceived breaches of anti-money laundering regulations. A primary concern was Binance serving Belgian users outside the European Economic Area (EEA).
FSMA stated, “Despite multiple requests for information directed at Binance, the company has failed to provide adequate evidence, according to legal standards, that the entities providing the services above in Belgium are truly established within the European Economic Area.”
Nonetheless, FSMA provided a solution for Binance by suggesting the company could operate within Belgium through “a legal entity subject to the law of another member state of the European Economic Area [EEA] that its home member state has duly authorized.” Poland is included in this category.
While Binance was established in Shanghai before relocating to Tokyo and then Malta, it operates under a holding company based in the Cayman Islands. Despite overcoming this recent obstacle, the global cryptocurrency exchange has encountered various regulatory challenges since its inception.
Binance temporarily suspended its services for Dutch users in July, attributing it to its inability to secure a virtual asset service provider license. In the same period, Binance withdrew its license application in Germany due to purported reluctance from the country’s financial regulatory body to grant the request. Additionally, Binance and its CEO, Changpeng Zhao, face a lawsuit from the United States Securities and Exchange Commission.
The crypto industry within the European Union (EU) largely remained unregulated until the recently passed Markets in Crypto-Asset (MiCA) Act was enacted. This groundbreaking legislative framework will become the world’s first comprehensive set of rules governing cryptocurrencies and aims to regulate virtual currencies like traditional currencies.