Binance May Establish Headquarters In Ireland, Changpeng Zhao Announces
When asked by Reuters, Changpeng Zhao, CEO and founder of Binance, spoke of the company’s future headquarters. According to him, the head office of the cryptocurrency exchange could well be established in Ireland. Moreover, the exchange recently established three subsidiaries in the country, namely Binance (APAC) Holdings, Binance (Services) Holdings and Binance Technologies.
“Historically, we claim we don’t have a headquarters. In fact, we are just establishing a few head offices in different parts of the world, ”Changpeng Zhao says.
Changpeng Zhao is committed to turning Binance into a true financial institution. To achieve this, the business leader must abandon the decentralized model of his exchange and comply with the requirements of the authorities. These require in particular that Binance equips itself with a centralized head office. This is the opinion issued by regulators in Singapore, Italy, the Netherlands, or South Africa.
“When we started we wanted to adopt decentralized principles, no headquarters, work all over the world, no borders. It’s very clear now that to run a centralized exchange, you need a centralized legal entity structure behind it, ”admits the Binance boss.
At the request of regulators, Changpeng Zhao therefore embarked on the search for a country capable of hosting the future head office of Binance. Obviously, his sights were set on Ireland. At the same time, Binance has already agreed to numerous measures to avoid the wrath of regulators. For example, Binance limited withdrawals to 0.06 BTC per day for basic accounts before imposing Know Your Customer (KYC) verification on all investors.
In recent months, many financial policemen have imposed significant restrictions on Binance. With its back to the wall, the platform was forced to abandon its derivative product offer in several countries, including Australia, Singapore, Brazil, and Hong Kong.
Why Binance is turning to Ireland?
Ireland is not a trivial choice. Over the years, the Emerald Isle has established itself as a real tax haven for digital companies. In Ireland, the corporate income tax rate does not exceed 12.5%. It is one of the lowest rates in the world. The European average is in fact around 27%. In addition, dividends are rarely taxed.
To benefit from these advantages, companies must have a permanent physical establishment on Irish territory. Many American multinationals have therefore set up their European headquarters in Ireland. This is particularly the case of Facebook, Twitter, Apple, Google, eBay and PayPal.
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