Binance to Launch Fiat Operations in Uganda
Changpeng Zhao, CEO and founder of Binance cryptocurrency exchange, said his company is preparing to launch a new fiat-backed cryptocurrency exchange platform in Uganda. Writes about it Cointelegraph.
The new platform will be called Binance Uganda and will be the first step for the company to launch operations to exchange cryptocurrencies for fiat currencies, in this case for Ugandan shilling. According to Zhao, the decision to launch the platform in an African country shows that “Binance is targeting more than just the most developed markets.”.
“We believe that cryptocurrencies can demonstrate their extreme utility in less developed countries. More money can be made in more developed countries, but we want to spread cryptocurrencies in other parts of the world, “he said..
Zhao also noted that their Ugandan unit is “growing very fast,” thanks to the help of local authorities, regulators and industry representatives: “Uganda is in a very interesting position. Only 11 percent of the population has bank accounts. It is both a challenge and an opportunity. Maybe it will be easier for them to accept cryptocurrencies than trying to raise the banking system. This is an interesting experiment and Africa has a large market. That is why we are here “.
Before the exchange can expand its fiat offerings, it will have to address many issues related to customer identification and anti-money laundering, he added..
Binance Uganda will be an independent entity, but at the same time have a “strong business association” with the main platform. The new exchange will use the codebase, operating systems and security measures of the original Binance.
The main platform, meanwhile, will be preparing to support the growth in trading volume, which, according to Zhao, could increase 100-1000 times. “I don’t know when this will happen, but we must be ready,” he said..
In the short term, the company plans to open in two or three more regions and continue to work on a prototype of its decentralized exchange..