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Binance, the world’s biggest cryptocurrency exchange, has announced the launch of its first fiat-crypto exchange in Uganda.
Expanding to the Unbanked
According to CoinMarketCap, Binance is the largest crypto exchange by volume. Over the past 24 hours, it has traded over $1 billion.
In an announcement released yesterday, the exchange said that it is starting a fiat-crypto trading pair with the Ugandan shilling. The Binance Uganda exchange opened yesterday, with the first 20,000 users to register rewarded with 0.5 BNB. It adds that total rewards will be limited to 10,000 BNB.
Additionally, the exchange said that it would provide users with a month of zero trading fees once trading goes live as a sign of “appreciation for the ongoing support.”
This move by the exchange marks its movement into communities where access to finance is limited. According to the World Bank, around eight million adults in Uganda have access to financial services. Yet, while strides are being made to improve access to banking services, more needs to be done. Notably, it was found that only 33 percent of Ugandans who hold financial accounts used them actively in 2016, according to a report from the Financial Inclusion Insights.
With a gap in the market, Binance Uganda is hoping to aid those who need it the most. This is made possible through smartphones. A study from the National Information Technology Authority Uganda (NITA-U) suggests that around 24.8m (or 70.9 percent) of Ugandans own mobile phones, reports the Daily Monitor.
Binance Plans Move to Malta
In March, it was reported that the exchange was setting up shop in Malta, according to a report from Bloomberg. As a result of crackdowns in China and Japan, the exchange’s founder and CEO, Zhao Changpeng, is seeking a fresh start in the Mediterranean.
According to the report, he said that he was hoping to offer a “fiat-to-crypto exchange” while working on securing a deal with local banks. However, it’s believed that it will be a crypto-to-crypto exchange. Fiat-to-crypto will only be provided via a separate local exchange the platform is opening in Malta. This month, it was revealed that Binance had opened a bank account in the European nation, allowing it to continue on its goal of expanding into different markets.
Known as the “Blockchain Island,” Malta is quickly being recognized for its crypto-friendly approach. As a result, crypto companies are turning their attention to it as they consider new jurisdictions to set up a new office.
What do you think of Binance’s move into Uganda? Let us know in the comments below.
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