After the UK director from Binance (BNB) left after only 6 months, it was Binance’s turn to leave Jersey after almost 2 years.
Changpeng Zhao’s team may have been overly optimistic in opening this branch, the numbers now bring them to reality.
The end is near in Jersey
A press release from Binance announced the upcoming closure of its subsidiary Binance Jersey. The latter was launched on January 15, 2019 as part of an expansion into European markets.
Binance had indicated that Binance Jersey allowed fiat-to-cryptocurrency conversion for European traders. When it was launched, trading operations were possible for Bitcoin (BTC) and Ethereum (ETH) againstEUR and the GBP.
While the objective was to make Binance Jersey a major player in European markets, statistics indicate that these prospects were undoubtedly too ambitious.
The latest data available on CoinMarketCap reveal that the exchange’s daily trading volume was $ 164,470.
Pairs trading volumes BTC / EUR and BTC / GBP were $ 76,597 and $ 46,974, respectively. Binance Coin meanwhile recorded a trading volume of 5,133 USD.
It’s just a goodbye: the dates to remember
Binance restrict deposits in GBP, in EUR and in cryptocurrencies from October 30, 2020. After the suspension of deposits, trading and withdrawals will be possible until November 9, 2020.
The final closure of the platform is scheduled for November 30, 2020, the date from which user accounts will be inaccessible.
The press release does not specify the exact reasons for the closure. Nevertheless, it is mentioned that the platform Binance will continue to offer its services to citizens of Jersey through accredited banking channels, with a wider choice of trading pairs and more liquidity.
Are low trading volumes the only reasons for leaving Jersey? Or is Binance refocusing its resources on a more profitable industry like DeFi? CZ recently spoke about Binance’s future in DeFi. This closure also raises another question: are Europeans ready to trade cryptocurrencies? We were treated to the series of wrecks of the exchanges – KuCoin, BitMEX, OKEx – lately. A Binance that joins this list might be the straw that breaks the camel’s back in the crypto markets.
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