- Binance is shutting down its Jersey subsidiary less than two years after launching
- The Jersey branch was launched to tap into more of the European market
- The subsidiary fell short of financial goals
The global leader in cryptocurrency exchange, Binance, has announced its Jersey subsidiary (a British dependency) will be closing imminently with accounts inaccessible by 30th November. Designed to access the European market for fiat-to-crypto currency trading, it was hoped the Jersey venture would be a vehicle for significant expansion.
Expectations do not seem to have been met. The cryptocurrency exchange has reassured users in Jersey that they will still have access to its main cryptocurrency exchange platform. Binance Jersey will begin restricting new deposits from the end of this month. Final trading and withdrawals in pairs and currency will end on 9th November. Yesterday’s trading generated only $202,743. The native crypto coin has also fallen, producing only $5,500 as a BNC/EUR trading pair.
Binance UK launch
In June of this year, plans were announced regarding a Binance UK platform, with the same focus on fiat-to-crypto currency exchange as its Jersey, Singapore, US, and Uganda branches. At the time, Binance UK was intended to be run independently of Jersey. This is intended to be an alternative access point to the European market, whilst regulated by the UK’s Financial Conduct Authority (FCA).
The FCA will be keeping a close eye on the cryptocurrency exchange, following recent scandals. In 2019, chief executive, Changpeng Zhao, asked users’ forgiveness in an emotional Youtube plea after a security breach resulted in a $40m hack. More recently, in April 2020, the global exchange was caught up in embezzlement charges alleging that funds had been misappropriated and mismanaged.
The appointment of Teana Baker-Taylor, previously Head of Global Strategy at HSBC, to Binance UK Director indicates a more traditional and conservative approach to this UK venture.