Binance will add another stamp to its passport book, having joined forces with Liechtenstein Cryptoassets Exchange (LCX) to build a new fiat-to-cryptocurrency exchange in the European nation.
The new Liechtenstein-based exchange, dubbed Binance LCX, will support trading between the euro, Swiss franc and “major” cryptocurrency pairs, according to a press release.
Binance, which operates the world’s second-largest crypto exchange by daily volume, will oversee the back-end creation and operation of the platform. Meanwhile, the Binance LCX team will handle all logistical and regulatory components including compliance, KYC, customer support and liaison with the government.
According to Binance CEO Changpeng Zhao, the joint venture may break ground in the rapidly evolving field that is blockchain regulation:
“I hope Binance LCX will drive new standards for usability and compliance for the blockchain industry, and we are very excited to bring the relevant experience and best practices to grow our team at Liechtenstein.”
Boasting one of the highest GDPs per capita in the world, Liechtenstein is a member of the European Economic Area–not the European Union. As a result, it remains something of a regulatory oasis and would appear to be emerging as a new blockchain hotspot akin to Malta—Binance’s new stomping ground.
Comprised of 40,000 citizens, Liechtenstein has often played on its minute population as a strength, with the government implementing changes at the drop of a hat. After years of progressive financial policy, Liechtenstein appears to be turning its eye to blockchain. In March, Prime Minister Adrian Hasler laid out fresh regulations, the Blockchain Act, giving legal clarity to companies dealing with the new technology.
Binance, however, does not appear to miss the significance of setting up camp in one of Europe’s financial strongholds. Closing the press release, the Binance team noted:
“Liechtenstein is the ideal location for Binance LCX to operate as it is geographically positioned in the heart of Europe and is part of the European Economic Area (EEA). Furthermore, the strategic location enables market access and passporting to the rest of Europe.”
Cover Photo by Chris Barbalis on Unsplash