Binance is the largest cryptocurrency exchange in the world. Binance has established a Polish entity to serve Belgian residents. This comes after Binance was forced to suspend its services in Belgium in July 2022 due to regulatory concerns.
The Polish Financial Supervision Authority (PFSA), which is responsible for overseeing the conduct of Binance Poland, is going to regulate the new Polish entity. Consequently, Binance will now have to comply with the same rules and regulations that other financial institutions in Poland will have to follow.
Binance Poland will offer a limited range of services to Belgian residents, including spot trading, margin trading, and staking. However, it will not offer derivatives trading or other more complex products.
The move by Binance to set up a Polish entity is a sign that the company is committed to complying with regulations in different jurisdictions. It is also a way for Binance to regain access to the Belgian market, which is a large and important market for cryptocurrency trading.
Background of Belgian Financial Market Authority (FSMA)
In July 2022, the Belgian Financial Market Authority (FSMA) ordered Binance to suspend its services in Belgium. The FSMA said that Binance was not authorize to operate in Belgium and that it was offering financial services without the necessary licenses.
Binance appealed the FSMA’s decision, but the appeal was rejected. As a result, Binance was forced to suspend its services in Belgium.
Services Offered by Binance Poland
Binance Poland will offer a limited range of services to Belgian residents. The following services will be provided:
- Spot Trading: Using spot trading, users will be able to trade cryptocurrencies at the current market price without having to wait until the next market day.
- Margin Trading: Trading on margin is a way for users to leverage their trades by borrowing money from others.
- Staking: A staking program is one of the ways that users can earn rewards by holding cryptocurrencies for a certain period of time.
Binance Poland will not offer derivatives trading or other more complex products. This is because these products are more risky and require a higher level of investor sophistication.
The establishment of a Polish entity by Binance is one of the most significant developments in the cryptocurrency industry in recent years. As a result, it demonstrates that cryptocurrency exchanges are taking regulatory compliance very seriously. Moreover, it is a sign that the cryptocurrency industry is maturing and becoming more mainstream in a positive way.