Africa is a big market and needs to focus on digital financial services
The largest crypto exchange in the world, Binance has a daily flow of over one billion dollars and holds almost 20% of the total amount with BTC / USD. According to one of the founders and CEO of Binance, Changpeng Zhao, the cryptocurrency business certainly brings more money to trade in better-developed countries, but it is also necessary to introduce crypto to the rest of the world. According to the new plan, Africa is a targeted market with high potential, but with a minimal number of people who have access to bank accounts. Therefore, Uganda is one of the first projects where this company will launch the first exchange platform for crypto-fiat trading.
On Thursday, this world’s largest exchange, located in Hong Kong, announced that it would set up the first crypt-to-fiat exchange in Uganda, on which it would be possible to exchange cryptocurrencies for local siling. At the same time, it is the first platform of this kind in the country.
For a start, this platform will operate separately from the official Binance company, but their business will be closely linked. As a sign of welcome and better affirmation of the new exchange in Uganda, the company decided that the first 20,000 registered users would receive the amount of 0.5 binance coins (BNB). This kind of support is also accompanied by the fact that Binance Uganda will not charge transactions fee when it comes online. Distribution of tokens will be done according to the principle of first-come, first-service. However, when it comes to exchanges that involve a fiat currency, it is necessary to fulfill the legal requirements regarding already established regulations under the system “know your customer” and the ALM (Asset & Liability Management) regulation. By doing so, users who want to withdraw their funds will first have to fulfill the required verification of the identification.
Fiat – Crypto Exchange can be a solution for poorly developed use of banking services
From Binance, they see a new project as challenging as well as a significant opportunity. CEO, Zhao points out that less developed countries such as Uganda, it is necessary to bring closer the trade of cryptocurrencies, which would significantly ease up to the present terms of services when the finances are in question. Considering that only 11% of the population owns bank accounts, and from opened accounts since 2016, only one third is active, the exchange platforms that will enable fiat trading pair can be the right solution.
Binance, who has located its business since the beginning of the year on the small island of Malta, plans to establish a similar platform for crypto-fiat in this Mediterranean country in the very near future.