Here’s why Binance is planting roots in smaller countries
Top crypto exchange Binance seems to be focusing on smaller countries for now, as they are more willing to respond to change and take faster action with respect to cryptocurrencies. In an interview last month with Fred Wang, founder of Mars Finance, Binance CEO Changpeng Zhao said that quicker action enables these countries to have a stronger advantage in the new age of cryptocurrency.
Zhao clarified that the reason behind Binance reaching out to such countries isn’t because of the fact that they have relatively fewer resources. “Their internal departmental coordination is relatively small, and everyone knows everyone. The action is faster. In this round of change, they have a very strong advantage,” he said.
“Look at Uganda and our international move. How many presidents have we met? There is a lot more we can’t say,” Zhao hinted in the interview.
Binance expansion to Malta, Uganda
Interestingly, Malta’s Prime Minister Joseph Muscat has openly welcomed the exchange to the country, as evidenced by the tweet below.
Welcome to #Malta ?? @binance. We aim to be the global trailblazers in the regulation of blockchain-based businesses and the jurisdiction of quality and choice for world class fintech companies -JM @SilvioSchembri https://t.co/3qtAQjOpuQ
— Joseph Muscat (@JosephMuscat_JM) March 23, 2018
The exchange moved to Malta after Japan’s top regulator issued a warning to Binance on account of it not being registered in the country. Zhao had earlier said that Binance had no plans of becoming a Japanese exchange, “since the rules are too strict, it doesn’t suit Binance.”
The exchange had said last month that it would set up a cryptocurrency platform in Uganda called “Binance Uganda”, which would support the Ugandan Shilling along with major digital currencies. Zhao said that the company was interested in expanding its operations in Africa because of its large population base.
He mentioned in the interview that many people in the industry were targeting advanced economies because this offers “easy money”.
No plans for IPO
Zhao added that the exchange has no plans of going public in the traditional financial industry.
“IPO in the traditional financial industry has become a tool for financing, or a way out for the early investors. I don’t want to do that,” he said.
Image via Shutterstock
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