The gap between fiat and crypto is slowly being filled by the efforts of Binance and Liechtenstein Cryptoassets Exchange (LCX). The firms established a joint partnership under Binance LCX and are set to launch a fiat-crypto exchange in Liechtenstein, a landlocked German-speaking state in the heart of Europe.
Since the new platform is located in Europe, it offers trading between Swiss Francs (CHF) and Euros (EUR) in exchange for major digital currency pairs. Binance LCX plans to add more trading pairs in the future as other coins are still subject to regulatory approvals.
The Binance group will provide and maintain the technology platform, while Binance LCX handles customer support, legal requirements, due diligence, Know Your Customer (KYC) policy, Anti-Money-Laundering (AML) laws, and government communications. As a whole, Binance LCX plans to construct a team of 10-15 people for its Liechtenstein office and will immediately start the hiring process.
Following the launch and the hiring process, Changpeng Zhao, CEO and Founder of Binance, said: “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.”
A SMART COUNTRY IN THE MAKING
Liechtenstein is an ideal location for Binance LCX to operate in because of its excellent geographical position in Europe. The nearby areas can also enable market access and passporting to the rest of Europe. In fact, the state is part of the European Economic Area (EEA).
Furthermore, Liechtenstein has reportedly taken friendly relations towards cryptocurrencies and the blockchain technology, while promoting the developments in the “Crypto Valley” or Switzerland. The government even introduced a new blockchain law which provides legal and regulatory measures for businesses and customers. Not long after, the country’s lending institution Bank Frick started offering direct investments and cold storages for five major cryptocurrencies: Bitcoin, Bitcoin Cash, Litecoin, Ripple, and Ethereum.
Beyond question, Liechtenstein will surely strengthen its position as a smart country in the making by introducing the Blockchain Act Liechtenstein. It will let them provide a “comprehensive and holistic legal structure as a basis for an entire token economy.”