After an order from the Belgian Financial Services and Markets Authority (FSMA), crypto exchange Binance announced its Poland entity would be providing services to residents of Belgium.
In an Aug. 28 announcement, Binance said Binance Poland sp. z o.o. — an entity the exchange registered with Polish regulatory authorities in January — would comply with “regulatory obligations” for residents of Belgium looking for services on the exchange. According to Binance, some users may need to submit documentation in accordance with Know Your Customer requirements for Poland rather than Belgium.
The announcement came roughly two months after Belgium’s financial regulator ordered Binance to stop offering crypto exchange and custody wallet services, citing violations of the country’s Anti-Money Laundering and Combating the Financing of Terrorism requirements. At the time, FSMA suggested Binance could operate in Belgium via 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 EEA includes Poland.
A global crypto exchange operating in many countries through various entities, Binance has had a number of regulatory entanglements since its launch. The crypto exchange halted its services for Dutch users in July, citing a 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 United States Securities and Exchange Commission.
The Markets in Crypto Assets legislation, a bill aimed at establishing a consistent regulatory framework for crypto assets among the European Union member states, is expected to take effect in 2024 following passage by policymakers. The framework is currently moving through a consultative phase for feedback on technical standards.