BINANCE, the second largest cryptocurrency exchange by global trading volume, will soon allow customers to convert digital tokens into fiat currencies such as the euro, according to CEO Zhao Changpeng.
As of 2018, the crypto giant sees about $1.5 billion USD in trade volume every day and is said to have made $200 million in profits during Q2 of 2018 alone. This makes Binance more profitable than most traditional banks in the world.
Zhao reiterated that crypto-fiat trading will only be offered through a separate local exchange the company is opening in Malta and will most likely begin fiat trading with a euro-Bitcoin (BTC) pair.
WHY REGISTER IN MALTA?
Binance announced the opening of an office in Malta at the end of March after receiving warning letters from financial authorities in Japan, China, and Hong Kong about its unregistered status.
MALTA: THE ‘BLOCKCHAIN ISLAND’
Malta, a global leader in blockchain regulation, has made significant movement towards becoming the go-to country for blockchain startups and innovators. Earlier this year, the country released a consultation document related to the enactment of three proposed pieces of legislation:
- MDIA (Malta Digital Innovation Authority) Bill
- Technology Arrangements and Service providers (TAS) Bill
- Virtual Currencies (VC) Bill
The MDIA Bill covers the ethics and governance of blockchain technology.
The TAS Bill covers registration and certification of auditors and administrators of blockchain technology.
The VC Bill covers regulatory regimes and framework for Initial Coin Offerings (ICOs) and cryptocurrency related services such as brokers, exchanges, wallet providers, advisors, wealth managers and market makers dealing in cryptocurrencies.
Silvio Schembri, Junior Minister for Financial Services, Digital Economy & Innovation within the Office of the Prime Minister of Malta, said in a Cointelegraph interview:
“We are not shying away but instead want to unleash the opportunities that [blockchain] holds by regulating the sector without stifling innovation. Ultimately our vision is to make Malta ‘The Blockchain Island’.”
WHAT CRYPTO-FIAT TRADING DOES FOR THE MARKET
- Higher trading volume
- Higher liquidity
- Increase in the number of market participants
- More speculators
In the long-term, more crypto-fiat exchanges is good for the market because of the reasons outlined above. Especially when you have the top two global exchanges (Binance and OKEx) both expecting to offer crypto-fiat trading pairs. In the end, an increase in the number of market participants, coupled with clear non-stifling regulation, should lead to greater vendor and merchant adoption and, eventually, market adoption overall.
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“B2B reporter – Content Manager – Contributor – Fintech – Blockchain – Cryptocurrency”
Simon Chou is a B2B reporter and content manager specializing in technology and finance. He has worked with many clients in the fintech and blockchain space. He holds investment positions in bitcoin and other large-cap cryptocurrencies, and has been reporting on cryptocurrency since 2017. Currently, Simon is the content manager for a major cryptocurrency exchange @HybridBlockHQ.