The top cryptocurrency exchange in the world, Binance, has unveiled its European based exchange platform, by name Binance Jersey, which will enable fiat-to-crypto transactions on the island of Jersey.
The European arm will reportedly transact in Pounds, Euro, Ethereum and Bitcoin. This new development adds Binance to the list of companies with a European branch, including Coinbase.
The announcement of Binance Jersey, the European extension of Binance, was made on Jan 16, 2019, by the firm and it stated that the new exchange would enable users to trade in pairs for Ethereum and Bitcoin against the Euro and Pounds. Wei Zhou, the chief financial officer of the exchange, said that: “Binance selected Jersey for its highly developed digital infrastructure, robust regulatory framework, and world-class financial services sector.”
Binance also disclosed that the new platform would grant “freedom from looming Brexit uncertainty where the pound and euro are also in concern.”
The announcement stated that Binance Jersey will be independent of the Binance Corporation but will operate with the same technology that Binance.com uses. At the moment, the new exchange is employing new staff.
The development of the exchange has been going on since June 2018, with the support of Digital Jersey, an economic development agency that is backed by the government, to provide the island with at least 40 jobs.
At the time of the newly formed partnership, the CEO of Binance, Changpeng Zhao, said, “With its local economy based on a major currency (GBP), and its close proximity to the U.K. 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.”
Why the European Route?
In the past months, a number of companies have set up European bases, like Coinbase, which points to a much bigger benefit to be derived than just the continent’s population.
The blockchain industry has received a lot of support in Europe, leading to a stable framework for the industry to thrive.
Some European governments have incorporated the blockchain technology into their telecommunications and land registration.
Actually, in certain quarters, some are of the opinion that Europe is friendlier towards blockchain compared to the United States.
The issue of taxes also comes into play in the European decision. When it comes to taxes, European countries are more committed to the creation of crypto tax codes and enforcing them appropriately, unlike the IRS that is taking so much time to come up with comprehensive crypto tax codes.