In a strategic move aimed at navigating regulatory challenges, Binance, a prominent cryptocurrency exchange, has introduced a dedicated Polish subsidiary, Binance Poland sp. z o.o., to accommodate its Belgian clientele while adhering to Belgian regulatory stipulations.
After encountering regulatory obstacles in Belgium, Binance has devised a solution that caters to the Belgian market while maintaining compliance. Through an official blog post, Binance announced its decision to utilize its newly established Polish entity to serve Belgian residents.
Binance Poland sp. z o.o. has been announced as the designated entity to provide Binance services to Belgian residents. This move is aimed at ensuring Binance’s compliance with regulatory obligations, allowing for the continued provision of services to users in Belgium.
This strategic maneuver follows the regulatory intervention of Belgium’s Financial Services and Markets Authority (FSMA) in June 2023. FSMA demanded the cessation of all digital asset services within the country, citing concerns about Binance’s provision of exchange services between virtual and legal currencies from non-European Economic Area countries.
To facilitate this transition, Binance is redirecting its Belgian clients to its Polish arm, which operates as a registered virtual assets service provider (VASP). Affected users will be required to agree to new Terms of Use for Binance Poland and may need to furnish additional Know Your Customer (KYC) documents to meet new regulatory requirements.
Binance’s foray into Belgian territory is emblematic of its global regulatory challenges. Apart from Belgium, the exchange faces scrutiny from the SEC and the Department of Justice (DOJ). The SEC initiated legal proceedings to safeguard U.S. customer funds, while the DOJ alleged Binance’s support of sanctioned Russian banks. These challenges have spurred Binance to implement strict measures in its operations, including restrictions on Russian peer-to-peer trading and contemplation of an exit from the Russian market.
