Binance Shows Regulatory Wit: Taps Poland License to Serve Belgian Users

Binance on Monday announced that users in Belgium can continue to use its services through Binance Poland sp. z o.o., the cryptocurrency exchange’s Polish-regulated arm.

“We are pleased to announce that Binance Poland sp. z o.o. is now the entity that provides Binance services for Belgian residents. By doing this, Binance ensures that it complies with its regulatory obligations and can continue to provide services to Belgian users,” the exchange said in a blog post.

Belgian Users to Use Polish Entity

According to Binance, Belgian users can continue to access its services through the Polish entity by accepting the Terms of Use of Binance Poland. These users may also be required to resubmit some mandatory know-your-customer (KYC) documentation in compliance with Polish regulatory requirements, the platform said.

The crypto exchange added that customers who do not agree to the terms of use for Binance Poland will be put into “withdrawal-only” mode.

Binance Shows Regulatory Wit

The move comes two months after Belgium’s financial regulator, the Financial Services and Markets Authority (FSMA), ordered Binance to cease offering crypto exchange and custody wallet services to Belgian residents. At the time, the regulator suggested that the company could operate in 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.”

With Poland being a member of the EEA, Binance has shown its regulatory wit by tapping its Poland license to serve Belgian users. However, this is only a workaround, as the exchange is still not authorized to operate in Belgium.

Earlier this year, the Binance Polish arm was granted a license to operate as a virtual asset service provider (VASP) in Poland. The permit allows the company to provide crypto asset exchange and custody services in the country.

Meanwhile, Binance continues to face regulatory scrutiny in several countries. A few months ago, the United States Securities and Exchange Commission (SEC) sued the exchange and CEO, Changpeng Zhao (CZ), for allegedly operating illegally and misusing users’ funds. The company also faces regulatory pressure in Germany, Australia, and the Netherlands.