Binance Expands Fiat-to-Crypto Exchange Into Europe Via Jersey
Jimmy has been following the development of blockchain for several years, and he is optimistic about its potential to democratize the financial system.
Binance’s cryptocurrency exchange platform has expanded into the European market with its entry into the Island of Jersey, a self-governing dependency of Great Britain. Binance Jersey will allow trading of popular cryptocurrencies bitcoin (BTC) and ether (ETH) against the euro (EUR) and the British pound (GBP).
The exchange will launch with four trading pairs, including BTC/GBP, ETH/GBP, BTC/EUR and ETH/EUR.
In a statement, Wei Zhou, Binance’s chief financial officer, called the island “an undisputed pioneer in blockchain development leveraged by this strong framework and talent pool.”
He added: “Binance Jersey hopes to increase Jersey’s competitive advantage in banking from other jurisdictions competing for cryptocurrency-related business as the island’s cryptocurrency regulation allows.”
Binance and Digital Jersey first partnered in June 2018, with both companies signing a Memorandum of Understanding (MoU) such that Binance could “develop a compliance base and cryptocurrency exchange in Jersey.” The partnership was also meant to help Binance develop a better understanding of the regulatory and economic environment of Jersey Island, particularly with compliance with anti-money laundering and know-your-customer (KYC) laws.
At the time, Binance CEO Changpeng Zhao explained why they chose Jersey as their latest destination. “We have chosen Jersey to be the next big step in our global expansion strategy for its clear and pro-crypto investment and regulatory environment. With its local economy based on a major currency (GBP), and its proximity to the UK and Western Europe, we are confident the cooperation with Jersey will not only benefit the local economy, but also form a strong operational foundation for our expansion into the rest of Europe.”
Jersey is not part of the EU; however, it maintains a special relationship with the EU through the U.K. It is only regarded as being a part of the European Union for trade in goods; otherwise the Island is not a part of the EU. (Its formal relationship is set out in Protocol 3 of the U.K.’s 1972 Accession Treaty.) The island has made its intention known to Great Britain that, post-Brexit, it intends to preserve its relationship with the European Union, as well as with the United Kingdom.
Jersey could serve as a contingency plan post-Brexit for Binance, following in the footsteps of Coinbase, which opened a Dublin office last year. Binance officials were unavailable to elaborate on these potential plans.
Registration on Binance Jersey started immediately, as Zhao noted in a tweet:
“Binance.je is overwhelmed with registrations. There is a backlog of KYC verifications already. More resources are allocated to reduce it. In the mean time, we appreciate your understanding and patience. The registration prize is FIFO based, no worries. Just crazy!”