Changpeng Zhao, CEO of cryptocurrency exchange platform Binance, slipped Saturday, Sept. 15, that his company would be launching a fiat cryptocurrency exchange in Singapore today.
— CZ Binance (@cz_binance) September 15, 2018
In a reply to the thread, Zhao said:
“The market shows dynamics. We continue to increase the volume.”
Zhao’s tweet came following his speech at the Cumberland Summit blockchain business event in Singapore. Per his remarks and tweets, the exchange will start off in an invitation-only, beta testing phase before opening up to a wider audience. Exchanges like this allow people to trade fiat currency for cryptocurrencies like Bitcoin and Ethereum.
The announcement follows Binance’s opening of a fiat-to-cryptocurrency Lichtenstein exchange, named Binance LCX, last month.
The company’s Singapore exchange, however, may offer members a fiat-to-fiat currency exchange opportunity, allowing for greater flexibility across currencies and better exchange rates. The interbank exchange rates offered through Binance’s direct exchange allows customers to keep more of their money than typical exchange rates.
The move also fits Binance’s pattern of setting up shop in countries with more relaxed regulatory laws following China’s nationwide ban on cryptocurrency trading.
As of last month, Binance was the world’s second-largest cryptocurrency exchange by daily volume, with exchanges in Uganda, Malta and South Korea, among others. With this global expansion and further ventures planned for Africa, Binance is definitely making good on its company motto: “Exchange the world.”
Singapore, in particular, is becoming a hub in the cryptocurrency community, as cryptocurrencies are not currently subject to government regulation. That lack of government oversight, coupled with a strong economy, makes the country very attractive to companies like Binance.
Additionally, cryptocurrencies are not recognized as legal monetary tender in Singapore, but currency exchanges are still subject to “anti-money-laundering” (AML) and “combating-the-finance-of-terrorism” (CFT) regulations.
Big players in the tech space have shown faith in both Binance and Zhao, with TechCrunch founder Michael Arrington describing Zhao as “the real f*cking deal” and an “industry titan.” Arrington had the chance to talk with Zhao in Lichtenstein and was, apparently, thoroughly impressed, even hinting in a blog post that his digital asset management firm could work with Binance in the future.
Zhao will be attending Consensus Singapore, Sept. 19-20.
Cover Photo by Miguel Sousa on Unsplash