Binance has announced that it will continue serving Belgian users, following an intervention by the country’s financial regulator that had earlier ordered the platform to halt operations due to anti-money laundering (AML) and combating of the financing of terrorism (CFT) violations. The exchange has transferred these operations to its Polish entity, Binance Poland, registered under Polish regulatory authorities since January. Belgian users seeking services on the platform may need to adhere to Poland’s Know Your Customer (KYC) regulations instead of domestic rules.
The Belgian Financial Services and Markets Authority (FSMA) gave the nod for Binance to operate within the nation’s borders via a “legal entity governed by the law of another member state of the European Economic Area (EEA).” Consequently, Binance Poland will shoulder the responsibility of complying with regulatory obligations for Belgian investors desiring services on the exchange.
This shift in operations comes amidst looming Markets in Crypto Asset legislation, anticipated to initiate a consistent regulatory infrastructure for crypto assets across European Union member nations, in 2024. However, this is just one of many regulatory entanglements that the exchange has faced over time. Being operational in many countries via multiple entities, the exchange has previously confronted regulatory hurdles in the Netherlands due to a failure in obtaining a virtual asset service provider license.
Concurrently, Big Tech giant Google has been gearing up for compliance with the European Union’s Digital Services Act (DSA) by modifying some of its service policies. Google has pledged substantial investments to meet the specific requirements of DSA by extending its Ads Transparency Center among several other initiatives. While DSA is intended to standardize content regulations across Europe and introduce more precise content moderation processes, the buy-in from stakeholders has been mixed. Some applaud the initiative as necessary to keep Big Tech in check, while others caution of a potential infringement on free speech rights.
These development echo a significant trend in the evolving crypto space – as governments globally scramble to devise rules for a new asset class, major exchanges and other industry players are tasked with the dual challenges of adapting to diverse regulatory climates while continuing to innovate and serve their users.
Source: Cointelegraph
