Binance announced that FIAT-to-crypto pairings are imminent after opening a bank account, for that matter, in Malta. The company has been growing fast since fleeing Japan and Hong-kong due to regulatory crackdowns.
Binance, which is one of the biggest cryptocurrencies exchanges in terms of daily trading volumes and registered users base, is taking a step forward towards launching FIAT/Crypto trading pairs to its customers.
During an interview with CoinTelegraph on June 6, Binance CEO and founder Changpeng Zhao revealed that the Malta-based exchange platform has set up a new bank account to allow FIAT deposits and withdrawals. No further information was provided including the name of the bank and if it is a local bank. However, Zhao assured that trading with FIAT currency would be available “within the year.”
Another Exchange to Trade Cryptocurrencies for Fiat
The new feature is believed to bring in substantial cash inflows to the company, which has, by far, only offered crypto-to-crypto pairings. It is worth mentioning that the only stable coin offered by Binance is USDT (Tether), which is a digital currency pegged to the value of U.S. dollar.
Another major cryptocurrency exchange announced a similar move last week. Bittrex, which is a U.S.-based exchange, announced that crypto-to-FIAT trading pairs had been made available after securing a deal with a local bank. The company reported that the feature was only available to corporate clients in four states: California, Washington, New York, and Montana. However, there are plans to include individual investors all across the country.
A Mediterranean Regulatory Blessing
Binance has been thriving ever since moving to Malta, after receiving a warning from the Japanese financial services agency in March. Just a month prior to the Japanese warning, Hong-Kong Securities and Futures Commission revealed that they have sent a letter to seven cryptocurrencies exchanges and ordered them to halt trading cryptocurrencies without a license.
In fact, digital assets were already ruled as securities in the territory. Binance is believed to have received the letter among other Hong-Kong-based exchanges.
The move to Malta came as the country publicized its desire to establish itself as a new global hub for FinTech and Blockchain ventures. Furthermore, the European island has built a non-restrictive regulatory framework around cryptocurrencies, exchange platforms and initial coin offerings (ICOs).
Back then, the move was even welcomed by the country’s Prime Minister Joseph Muscat, who tweeted about the announcement.
Welcome to #Malta ?? @binance. We aim to be the global trailblazers in the regulation of blockchain-based businesses and the jurisdiction of quality and choice for world class fintech companies -JM @SilvioSchembri https://t.co/3qtAQjOpuQ
— Joseph Muscat (@JosephMuscat_JM) March 23, 2018
Zhao expressed his satisfaction with the overall progress the firm has made since its relocation and hinted ongoing talks between the government and stock exchanges for eventual collaborations. He, reportedly, described the country as “very welcoming” and as “one of the best places” for Blockchain companies.
Zhao went on to comment the regulations around cryptocurrencies in Malta as “reasonable,” noting that as much as “half a dozen” Blockchain ventures have made a similar move ever since late March 2018.
Earlier this month, Binance announced its plan to launch a $1 billion investment fund that targets Blockchain and cryptocurrency startups. The firm revealed to TechCrunch its plans to launch a “Binance Ecosystem Fund,” along with as much as twenty partners.