Binance's cryptocurrency exchange platform has expanded into the European market with entry into Jersey, a self-governing UK addiction. Binance Jersey will allow the trade in popular bitcoin (BTC) and ether (ETH) cryptocurrencies against the euro (EUR) and the British pound (GBP).
The exchange will be launched with four trading pairs, including BTC / GBP, ETH / GBP, BTC / EUR and ETH / EUR.
In a statement, Wei Zhou, chief financial officer of Binance, called the island "an undisputed pioneer in the development of blockchain exploited by this solid framework and talent pool".
He added: "Binance Jersey hopes to increase Jersey's competitive edge in banking from other competing jurisdictions for cryptocurrency activities as permitted by the island's cryptocurrency regulation."
Binance and Digital Jersey collaborated for the first time in June 2018, with both companies signing a Memorandum of Understanding (MoU) so that Binance could "develop a compliance basis and a cryptocurrency exchange in Jersey". The partnership was also designed to help Binance develop a better understanding of the legal and economic environment of Jersey Island, particularly in accordance with anti-money laundering and know-your-customer (KYC) laws.
At the moment, Binance CEO Changpeng Zhao explained why they chose Jersey as their last destination. "We chose Jersey as 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 main currency (GBP) and its proximity to the UK and in Western Europe, we are confident that the cooperation with Jersey will not only benefit the local economy, but will also be a solid operational base for our expansion in the rest of Europe. "
Jersey is not part of the EU; however, it maintains a special relationship with the EU through the United Kingdom. It is considered only as part of the European Union for the exchange of goods; otherwise the island is not part of the EU. (Its formal report is established in Protocol 3 of the 1972 Treaty of Accession of the United Kingdom). The island has let Britain know that, after Brexit, it intends to maintain its relations with the European Union, as well as with the United Kingdom.
Jersey could serve as a post-Brexit emergency plan for Binance, following in the footsteps of Coinbase, which opened an office in Dublin last year. Binance officials were not available to process these potential plans.
The registration on Binance Jersey immediately began, as noted by Zhao in a Tweet:
"Binance.je is overwhelmed by the recordings, there is already a backlog of KYC checks.More resources are allocated to reduce it.We meanwhile appreciate your understanding and patience.The registration bonus is based on the FIFO, no problem.You simply crazy!"