Binance Dodges Belgian Ban, Continues To Serve Via Polish Entity

In a bold move, Binance, one of the world’s leading cryptocurrency exchanges, has found a way to continue serving its Belgian customers. This comes two months after Belgium’s Financial Services and Markets Authority (FSMA) ordered the exchange to cease operations in the country. 

Belgian Users Found A Way To Use Binance

On June 23, the Financial Services and Markets Authority (FSMA) in Belgium issued an immediate cease-and-desist order to Binance. The regulatory action was taken because Binance had been providing exchange services for virtual and legal currencies, as well as digital wallet services, from countries outside the European Economic Area. The FSMA mandated that Binance must stop offering these services in Belgium, intensifying the global scrutiny on the exchange’s operations.

However, it seems like Belgian customers have found a path to use Binance. Today, Binance announced that its Belgian customers would be redirected through a Polish-based entity to circumvent regulatory efforts aimed at expelling the crypto exchange from Belgium.

Undeterred by the regulatory clampdown, Binance has come up with a solution to bypass the FSMA’s orders. However, the implications of these developments remain uncertain, as does Binance’s strategy for addressing them.

If Belgian users do not agree to the terms of use for Binance Poland sp. z o.o., a company registered within the European Union and therefore within the European Economic Area, they will be placed in a “withdrawals-only” mode. This information was initially communicated to clients in a message on the company’s website, which was later updated to remove the mention of the “withdrawals-only” condition.

Binance’s Regulatory Hurdles Intensify 

Recently, Binance has faced a string of regulatory hurdles and interruptions in its payment partnerships. Major credit card companies Mastercard and Visa have suspended their collaborations with the crypto exchange amid heightened regulatory scrutiny. Moreover, the US SEC and DoJ are aiming to intensify their scrutiny on Binance’s operations following claims of money laundering activities. 

Furthermore, Binance has severed its banking ties in both the United States and Australia, and its European banking partner is set to withdraw support by September. However, Binance continues to set milestones in regulatory approvals as it obtained licenses to operate in Dubai and El Salvador recently. 

Uniform regulations across the European Union, referred to as the Markets in Crypto Assets (MiCA), are set to be implemented in 2024. However, until then, various EU member states have their own regulatory frameworks governing the crypto sector. Binance has previously exited the Netherlands due to regulatory challenges and recently retracted its application for a license in Germany.