Binance Redirects Belgian Customers to Its Polish Branch After a Crackdown by Regulators
After receiving a suspension order from Belgium’s financial market authority in June, prominent cryptocurrency exchange Binance has developed a plan to rescue its Belgian market.
Because it provided cryptocurrency services from outside the European Economic Area (EEA), the world’s biggest exchange was told to shut down in Belgium.
On Monday, August 28th, Binance announced on its blog that it will be directing all Belgian users to its Polish location. The trade says the adjustment will help it stay in accordance with regulations and keep its Western European consumers.
Binance is a VASP in Poland, a European Economic Area (EEA) country. By accepting the Binance Poland Terms of Service, all clients of the Belgian cryptocurrency exchange will recover access to the trading site.
However, in order to comply with all Polish legal standards, the cryptocurrency exchange has indicated that existing customers may be required to resubmit some know-your-customer (KYC) documentation. All impacted consumers will eventually be given further information on the precise documentation requirements.
While Binance may have overcome the obstacle posed by the Belgian financial authorities, it continues to confront regulatory and operational hurdles in an increasing number of countries, including Australia, Germany, France, The Netherlands, and the United States (US).
After hearing that Binance has been providing services to sanctioned Russian banks, some in the United States have speculated that the Department of Justice (DOJ) may file action against the exchange.
With 13 charges already filed against it by the US Securities and Exchange Commission (SEC), the exchange’s activities in the US are under intense scrutiny and worry.
The Wall Street Journal reported on Monday that due to international sanctions against Russia, cryptocurrency exchange Binance is contemplating closing its Russian business.
After news surfaced that the Seychelles-based exchange still authorized transactions with many blacklisted Russian banks despite claims to obey the imposed financial sanctions by the international community, it banned those institutions from its Peer-to-Peer (P2P) trading platform.
Since Russia’s invasion of Ukraine in February 2022, the country has been under intense scrutiny and regulatory pressure throughout the world, and Binance is now weighing its options. One alternative being considered is “a full exit” from Russia.