Zhao Changpeng, the CEO and founder of Binance in an interview with Cointelegraph announced that they’re launching their first Crypto-Fiat exchange in Uganda.
Binance Uganda will support multiple crypto trading pairs with Ugandan Shilling and will be separate from Binance.com. However, it will use the same code base, with same operations, security and system.
This came as a surprise because Binance was rumoured to launch their fiat exchange in Malta first since they already have partnership with banks over there. When asked why they chose Uganda, Changpeng said:
We think that crypto has a very strong use case in less developed countries… there’s more money to be made in a more developed country, but we want to distribute crypto to the rest of the world.
This is Binance’s first attempt at a fiat exchange. They have a lot of regulations, anti-money laundering laws and Know Your Customer (KYC) to figure out. Commenting on Uganda’s financial situation, Zhao said:
Uganda [is a] really interesting situation, only 11 percent of the population has bank accounts. It’s both a challenge and an opportunity. So it may be easier to adopt cryptocurrency as a form of currency instead of trying to push for bank adoption. It’s an interesting experiment – Africa’s a big market, that’s why we’re there.
With the explosion of the market, Binance has been aggressively expanding their presence in multiple countries across continents. They’re expected to launch in 2-3 more countries in the short-term. In the long term, apart from the Crypto-Fiat exchanges, they’re also working on a decentralised exchange powered by Binance Coin to circumvent regulations and for better security.
Binance Coin (BNB) has a market cap of $1.6 Billion and is priced at $14.05, gaining 0.9% in the last 24 hours.