Cryptocurrency exchange Binance announced in June that it would completely cease offering its services to Dutch users. There seemed to be a temporary sense of security for users in Belgium, but shortly after, it also withdrew from Belgium. However, this was short-lived, as it is now allowed to resume providing its services to Belgians.
Binance states this in a blog article. The company had to halt its services to Belgian residents because it provided services to individuals in Belgium who were not part of the European Union. This was deemed illegal. As a result, the financial regulator decided to ban Binance from Belgium.
For the Netherlands, a different reason applied. The cryptocurrency exchange lacked the required license to offer financial products to Dutch customers. In the case of Belgium, a license from another European country was deemed sufficient. Binance already held a license for certain other European countries, enabling it to operate in Belgium as well.
The exchange is now making use of this situation. Belgian customers can now continue using Binance through the Polish entity, ‘Binance Poland sp. z o.o.’ This subsidiary holds the necessary licenses. However, users are required to approve the Polish terms of use and may need to re-verify their identity.
Binance assures all relevant authorities that the Polish division complies with all regulations. This allows it to provide services to Belgians via foreign operations. In Poland, it is registered as a Virtual Asset Service Provider (VASP) and is authorized to act as a custodian for customers.
The exchange has also chosen to discontinue its payment card services in various countries in South America and the Middle East. Customers showed insufficient interest in continuing to use Binance’s services. Additionally, Binance’s cryptocurrency BNB has faced significant setbacks due to the legal case with the SEC.
