Leading bitcoin-exchange Binance signed a memorandum of understanding with the government of Jersey Island with a view to launching a crypto exchange, which will offer users a bid paired with the British pound.
“We chose Jersey as the next major step in our global expansion strategy for a clear and friendly regulatory environment for crypto currency investments, ” said Binance CEO Changpeng Jao.
He noted that the Jersey economy is based on such a large currency as the British pound, and the island itself is in close proximity to Britain and Western Europe.
“We are confident that cooperation with Jersey will not only benefit the local economy, but it will also serve as a powerful operational foundation for our progress to the rest of Europe,” Jao added.
On Jersey, Binance plans to open an office for about 40 employees – from coders to marketing and legal professionals – and intends to work fully within local legislation.
“With the opening of the exchange with the couple in pairs, a lot of attention will be focused on Jersey from the side of the block-space. We definitely want to establish Binance Labs in this region and make investments from there, “said Joe Wei, the company’s CFO.
Thanks to Changpeng Jao’s extensive experience not only in the crypto-currency industry, but also in the traditional financial markets on Wall Street, Binance attracted significant liquidity and quickly gained the status of one of the world’s largest stock exchanges. This experience also helped the company in March, when Binance underwent a failed attempt to hack, but not only lost money, but actually located the intruders.
At the same time, the exchange faced problems in Japan, whose authorities eventually recommended that it find another jurisdiction. This place eventually became Malta, where the company has already opened a bank account and is currently preparing to launch trades paired with the euro.
Further expansion and arrival in Jersey make the exchange’s position even stronger, especially since the authorities of the island have already promised her full support with bringing their activities in line with the legislation on combating money laundering, obtaining a license and establishing bank partnerships.
Coinbase vs Binance
However, even more interesting is the arrival of Binance in Jersey and plans to launch trades paired with the British pound looks from the point of view of the future intense competition with the American giant Coinbase.
To date, the California company has virtually no competitors in terms of buying crypto currency for Fiat, but it is also very selective about the process of adding new coins, offering a very limited choice of assets. However, by opening the market for a large number of crypto-currencies and providing opportunities to trade them for Fiat, Binance, while having reliable bank support, may well challenge Coinbase and try to shake its actual monopoly.
Of course, Coinbase also does not stand still and in recent months has implemented a number of important acquisitions, as a result of which it can expand the services offered, but Binance has wide financial opportunities.
All this promises quite a fascinating competitive struggle, which, it is not excluded, can be joined by representatives of the traditional financial market.
Now the number of Binance users is 9 million, while at the beginning of the year there were 2 million. In the first quarter of this year, the company earned $200 million with an average trading volume in the range between $1.4 – $1, 5 billion
It should be added that Jersey, like Malta, also has a fairly friendly policy towards the crypto-currency industry. Back in October 2015, the Jersey authorities issued a document describing the state approach to the regulation of digital currencies, exchanges, ATMs and other services that connect digital currencies to traditional ones.
One of the most significant indulgences for companies engaged in transactions with virtual currencies was the cancellation of duties and the need to register a business if the annual turnover of the company does not exceed 150 thousand pounds sterling.