Prominent cryptocurrency exchange Binance has devised a strategy to save its Belgian market following a suspension order by Belgium’s financial market regulator in June.
The world’s largest exchange was ordered to cease its operations in Belgium because it offered crypto services from countries outside the European Economic Area (EEA).
Binance Moves To Retain Belgium Market
According to a blog post on Monday, August 28, Binance redirects all its Belgian users to its Polish branch. The exchange claims this move allows it to meet regulatory compliance and maintain its customers in Western Europe.
Binance is a registered virtual assets service provider (VASP) in Poland, an EEA member state. Therefore, all Belgian crypto exchange customers can regain access to its trading platform by agreeing to the Terms of Use of Binance Poland.
However, the crypto exchange has stated that registered users may need to provide some know-your-customer (KYC) documents again to clear all Polish regulatory requirements. In time, more details on the specific required documents will be provided to all affected customers.
Nevertheless, while Binance might have found a solution to the Belgian financial authorities’ hurdle, the world’s largest exchange still faces regulatory and operational challenges in a growing list of countries, including Australia, Germany, France, The Netherlands, and the United States (US).
Specifically in the US, there has been speculation of an impending lawsuit against Binance by the Department of Justice (DOJ) based on reports of the exchange’s continuous support of sanctioned banks in Russia.
Such speculation adds to the increasing scrutiny and concern over the exchange’s operations in the US, especially as it already faces 13 allegations from the US Securities and Exchange Commission (SEC).
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Binance Mulls Russia Exit
In other news, Binance is now considering shutting down its Russian market amid the heavy international sanctions on the Eastern European nation, according to a Monday report by The Wall Street Journal.
Initially, the Seychelles-based exchange had removed five Russian banks from its Peer-to-Peer (P2P) trading platform after reports emerged it still enabled transactions with several blacklisted Russian banks while claiming to follow the set financial sanctions by the international community.
As Binance examines its future considering the existing global scrutiny and regulatory pressure on the exchange, a company’s spokesman has stated the possibility of “a full exit” from Russia, which has been in a negative spotlight following its invasion of Ukraine in February 2022.