Cryptocurrency exchange ‘Binance’ launches a fiat-to-cryptocurrency trading platform for the European market, dubbed ‘Binance Jersey.’
Binance’s Efforts for Mainstreaming Bitcoin
Over the last few years, Bitcoin prices have been constantly declining. In the last 12 months itself, there has been an 80-percent decline in the valuation of the combined values of all cryptocurrencies, a major chunk of which is occupied by Bitcoin.
- Price $34,102.00
- Market Cap
Binance is one of the key players in the Cryptocurrency space which is constantly expanding and spearheading the efforts for mainstream adoption of cryptocurrency.
On 16th January, Binance launched a new trading platform, ‘Binance Jersey’ which offers fiat-to-crypto trading of the euro (EUR), the British Pound(GBP) with Bitcoin(BTC) and Ethereum(ETH). These services are available are all through Europe and the United Kingdom. Trading pairs such as BTC/GBP, ETH/GBP, BTC/EUR, and ETH/EUR will be available on the exchange platform.
However, to avail these services it is mandatory for a user to complete their authentication in accordance with the Know-Your-Customer(KYC) process.
The Driving Force Behind Binance’s Expansion
The press release by Binance asserts that the reason for expanding into the European markets is to provide ‘freedom from looming Brexit Uncertainty where the euro and pound are also in concern.’
Binance is following suit as the major crypto-exchange platform, Coinbase, had already opened an office in Dublin in August. This was reported as Coinbase’s contingency plan to combat the rising uncertainty of the UK leaving the European Union.
According to a statement by Binance CEO, Changpeng Zhao, they are receiving ‘overwhelming registrations’ for the new trading platform within the first 24 hours of launch. He also explained that in the wake of this increased traffic, KYC verifications are facing backlogs. More resources will be allocated to reduce the same, added Zhao.
Binance has been on a series of expanding its features. In June, Binance signed a memorandum of understanding with Digital Jersey, an organization that represents Jersey’s digital industries.
The primary aim of this collaboration is to deliver training as a part of the digital skills program initiated by Digital Jersey. The purpose of this program is to promote the Blockchain industry in Jersey. The collaboration will also help Binance regarding compliance with anti-money laundering regulations.
In the series of these expansions, Binance expanded the range of its token offerings. Last month it started the trading of two pairs using Ripple as the quote currency.
The European Market
The daily trading volume of cryptocurrency in Europe lies at a meager four percent of the total volume. It ranks behind US and Japan in terms of the total trading volume. European markets have struggled to demonstrate steady growth despite being one of the earliest markets to allow the trade of cryptocurrency.
Although it is difficult to ascertain whether Binance will provide the necessary stimulus for growth of cryptocurrency in Europe, it is likely to provide an alternative to the traders in Europe as only a handful of exchanges operate in Europe.
With Binance’s foray into the European and British cryptocurrency market, a three-way competition in ensured amongst Coinbase, Binance, and Bitstamp. With Coinbase and Bitstamp already having a strong market presence, it will be interesting to watch how the competition unfolds.