Binance,
the world’s largest cryptocurrency exchange by trading volume, has opted to migrate its users in Belgium to its Polish subsidiary rather than quit the Western
European country. In late
June, the Belgian financial markets watchdog ordered the exchange to immediately shut down its crypto exchange and custody
services in the country as it was serving Belgian users from
outside the European Economic Area (EEA).
In the order, the Financial
Services and Markets Authority (FSMA) identified 27 companies or ‘Binance
operators’ it said were helping to prop the exchange’s services in Belgium by offering
technical and operational support. However, Binance was not
able to demonstrate, despite multiple
queries, that 19 of these so-called operators are actually located within the
EEA and have domestic legal backing to provide such services in Belgium.
As a
result, FSMA ordered Binance to return all customers’ crypto holdings and keys.
However, the regulator gave the exchange the option of transferring its Belgian users to entities
regulated under the law of an EEA member state. It pointed out that such firms
must be authorized by domestic laws in their countries to carry out crypto
exchange and custody services, including within Belgium.
Today (Monday), Binance announced that it will continue to serve Belgian users by migrating them to
Binance Poland sp. z o.o. The move enables the business to meet its local regulatory
requirements in Belgium, Binance said, adding that
the Polish subsidiary
is registered as a virtual assets service provider in Poland and can, therefore, provide crypto exchange and
custodian services.
“Belgian
users can continue using the Binance platform by accepting the Terms of Use of
Binance Poland for Belgian users,’ the exchange stated in a blog post. “We may also ask users to
resubmit some of the required know-your-customer (KYC) documentation in order
to comply with Polish regulatory requirements (details to be provided to
affected users).”
FSMA
Responds to Binance
In a separate statement released on Monday, FSMA
acknowledged Binance’s decision to begin to serve its Belgian customers through
its Polish entity. However, the regular noted that only users who agree to work
with Binance Poland must be onboarded. Others, if they
agree, can…
