FSMA press release regarding Binance

Press release
A panel displaying the logo of the FSMA hangs at the entrance to the FSMA building

The FSMA has taken note of Binance’s decision to stop providing any services from a third country (outside the European Economic Area) and to offer its Belgian clients the option of working with Binance Poland. Under Belgian law, there is no obstacle to services being offered in Belgium by Binance Poland.

The FSMA has nevertheless asked that the transfer of clients to Binance Poland be subject to an individual agreement with each of the clients concerned. In the case of clients who do not consent to a transfer to Binance Poland, Binance will need to ask them for instructions to transfer their assets to another platform based in the European Economic Area (EEA) that is authorized on the basis of its national legislation to offer services in Belgium.

Moreover, the FSMA wishes to recall the following information:

  • within the EEA, the activity of provider of exchange services between virtual currencies and fiat currencies and of wallet custody services (Virtual Asset Service Providers, VASP) currently remains an unregulated activity, except as regards the prevention of money laundering and terrorist financing (AML);
  • while awaiting the entry into force of European Regulation 2023/1114 of 31 May 2023 on markets in crypto-assets, known as the MiCA Regulation, the legal framework for carrying out activities relating to virtual currencies differs from one European state to another;
  • Binance Poland is not subject to any obligation other than those arising from the 5th Anti-Money Laundering Directive. In application of that Directive, Binance Poland is registered with the Polish Ministry of Finance. The registration is not, as in many other EEA countries, subject to prudential requirements or an examination of the fitness or propriety of the directors or senior managers of the entities applying for registration. The Polish Ministry of Finance registers applicants within 14 days of their application; the latter process involves the provision of standard information and a declaration on their honour that the information provided by the applicant VASP is correct;
  • the Polish Financial Supervision Authority (the KNF) does not currently have any powers vis-à-vis Binance Poland.