The world’s largest cryptocurrency exchange, Binance, has partnered with Liechtenstein Cryptoassets Exchange (LCX) to launch a fiat-to-crypto trading platform in Liechtenstein.
Binance LCX will allow users to trade between Swiss francs and euros against major cryptocurrency pairs. The plan is to add more trading pairs once a regulatory framework is implemented in the world’s fifth smallest country by population.
Malta-based Binance will provide the platform and support to the new venture. Binance LCX will be in charge of customer support, regulatory compliance and communication with the local government.
Binance LCX has been designed to attract professional and regular investors. LCX CEO Monty C. M. Metzger says “professional investors need a reliable fiat channel to invest into crypto assets.”
A robust regulatory framework
“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,” says Liechtenstein Prime Minister Adrian Hasler.
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Liechtenstein has adopted a friendly and open stance towards cryptocurrencies and blockchain technology, echoing developments in neighbouring Switzerland, known for its “Crypto Valley” in the canton of Zug. Also, Malta has implemented a clear regulatory framework to attract entrepreneurs and innovators to the small Mediterranean island nation.
Liechtenstein introduced a new blockchain law providing legal and regulatory certainty for businesses and customers.
Benefits of blockchain
Hasler believes “blockchain can serve as an important base for a variety of economic applications, covering not only payment transactions but broader financial solutions, industry use cases and general applications”.
Liechtenstein’s Bank Frick began offering in March “direct investment” and cold storage for five cryptocurrencies, including Bitcoin, Bitcoin Cash, Litecoin, Ripple and Ethereum. Bank Frick Chief Client Officer Hubert Büchel claims “demand from companies across the whole of Europe”.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.