Binance’s Island-Hopping Continues, Opens Office on Jersey
Cryptovest
Published Jun 13, 2018 10:43AM ET
Updated Jun 13, 2018 11:00AM ET
Binance’s Island-Hopping Continues, Opens Office on Jersey
Only a few months after it took to Malta, Binance started cozying up to Jersey, one of the Crown Dependencies that comprise the Channel Islands between the UK and France.
“We have chosen Jersey to be the next big step in our global expansion strategy for its clear and pro-crypto investment and regulatory environment. With its local economy based on a major currency (GBP), and its close proximity to the UK and Western Europe, we are confident the cooperation with Jersey will not only benefit the local economy, but also form a strong operational foundation for our expansion into the rest of Europe,” CEO Zhao Changpeng said .
Those are some rather vague words, but nonetheless, it’s quite easy to break down why Jersey Island would be attractive for Binance. First of all, since the 1950s, the island has been a destination for wealthy businesses that wanted to benefit from the privacy that it offers to their accounts.
The nation not only lacks an inheritance tax—which was one of the first things that people took advantage of—but also has highly-favorable tax conditions for businesses that want to set up their financial accounts there. It’s not tax-free, however, for financial services companies. Binance will have to pay a 10-percent tax on its income. One could argue that it’s still a favorable chunk of its income compared to what it would have to face elsewhere in Europe.
Binance’s move to Malta may have had the same motivations—aside from the fact that the country has enacted reforms to make it more blockchain-friendly—due to its complete exclusion of taxes on foreign-earned income. Of course, the other motivation—which Changpeng hinted at in his statement—would be that Binance would be able to offer GBP pairs, much like how its move to Malta allowed it the ability to do the same with the Euro .
OKEx may have had the same motivations behind This article appeared first on Cryptovest 
Get The News You Want
Written By: Cryptovest
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.