By David Drake
The cryptocurrency industry has attracted the interest of potential investors due to its rapid growth and high returns over the years. This has significantly increased the role that cryptocurrency exchanges play in the industry as users buy and sell cryptocurrencies. Binance is one of the exchanges that is making headways in the industry.
Since its inception in 2017, Binance has been one of the fastest growing cryptocurrency exchanges and is currently the world’s largest cryptocurrency exchange by trading volume. As part of its efforts to improve the user experience, Binance has started testing a fiat to cryptocurrency trading platform in Singapore.
Improving User Experience
Although the cryptocurrency exchange has grown exponentially over the past year, one of the challenges users face is that they cannot convert fiat to digital currency on Binance. As such, they have to use other platforms to convert their fiat currency to cryptocurrency first then transfer the cryptocurrencies to their Binance wallet.
By introducing a fiat-to-cryptocurrency feature, Binance will make it easier for users to get more from their money because fiat exchanges offer interbank exchange rates, and not retail exchange rates. The beta testing began on September 18th and is open to users through invites only. Similar to other projects like the social impact fund that Binance has announced this year, these new developments show its proactive efforts at ensuring the full potential of blockchain technology is realized.
Blockchain technology is the basis for development of platforms such as Noiz Chain in interactive marketing, Gath3r in digital monetization, URAllowance for family smart contracts, ONe Network in social media security, HFC Coin in mortgage solutions space and LiveTradr in portfolio optimization.
The beta testing of the fiat exchange in Singapore is significant statement in several ways. Due to a regulatory framework that is friendly to cryptocurrencies, Singapore is currently the third most favorable country for initial coin offerings (ICOs). This shows a potential future synergy between ICO success in Singapore and Binance growth.
According to Massimiliano Rijllo, CEO at Coinnect SA, Binance’s extraordinary growth in one year shows there is real value in crypto, and that ICOs in Singapore stand to gain from having a global crypto exchange in the country.
He says, “Binance is an extraordinary case, not only in the crypto industry but also in the overall history of startups and business. A company founded in 2017 is now expecting impressive $1 billion profits for 2018. This is something that has never been achieved and a clear proof that Crypto is a real business. Starting FIAT trading in Singapore and also following the announcements regarding the launch of a Security Token Platform in Malta, Binance is moving to become a huge global Crypto Corporation and for sure this will positively influence ICOs in Asia and worldwide.”
Disclaimer: David Drake is on the advisory board for most of the firms mentioned or quoted in this article.