On Thursday (16 August 2018), Binance said that it was partnering with Liechtenstein Cryptoassets Exchange (LCX) to form a joint venture called Binance LCX that would be offering a fiat-to-crypto in the Principality of Liechtenstein, one of the world's smallest (with a population of around 38,000), richest (on a GDP per capita basis), and most blockchain-friendly countries.
According to the joint press release, Binance will be providing/maintaining the technology platform, whilst Binance LCX, which will have a team of 10-15 people in the Liechtenstein office, will handle everything else.
Binance LCX will offer CHF/EUR markets for all major cryptocurrencies (and more cryptoassets will get added over time).
The CEO of Binance, Chanpeng "CZ" Zhao, had this to say about this new venture:
“I believe Binance LCX will create a sustainable and reliable fiat-crypto gateway for professional and regular investors alike. I hope Binance LCX will drive new standards for usability and compliance for the blockchain industry, and we are very excited to bring the relevant experience and best practices to grow our team at Liechtenstein."
As for the CEO of LCX, Monty Metzger, he said:
“Professional investors need a reliable fiat channel to invest into crypto assets. We are excited to launch the joint-venture with Binance to establish new standards for the blockchain industry.”
You might be wondering why Binance has chosen Liechtenstein for its second foray into Europe (the first being Malta). The announcement says that Liechtenstein was selected for the following two reasons:
- Geographic positioning (in the heart of Europe) and being part of the European Economic Area (EEA); this "strategic location enables market access and passporting to the rest of Europe"
- Upcoming enactment of Lichtenstein's Blockchain Act, which will provide "a comprehensive and holistic legal structure as a basis for an entire token economy"
Liechtenstein's Prime Minister, Adrain Hasler, welcomed Binance's arrival to his country:
"We welcome Binance LCX to Liechtenstein. Blockchain technologies are laying the basis for an entirely new industry. We are confident that Liechtenstein's existing and future legal framework and practice provide a robust foundation for the Binance LCX and other Blockchain companies to provide exceptional services here in Liechtenstein."