Binance to set up its head office in Ireland
Binance is considering setting up its global headquarters in Ireland. After hinting that France could host its centralized headquarters, the cryptocurrency exchange established a new subsidiary on Irish soil.
Binance strengthens its presence in Ireland.
According to the Irish Independent, an Irish daily, Binance continues to strengthen its presence in Ireland. The cryptocurrency exchange just opened a new business on the Emerald Isle, Binance Exchange (Ie). By the end of September, Binance had already established three subsidiaries in the country.
Everything suggests that the exchange plans to establish its headquarters in Ireland. A few weeks ago, Changpeng Zhao, CEO and founder of Binance confirmed to Reuters that Ireland was indeed one of the countries considered to host its headquarters. Note that Changpeng Zhao is the administrator of the four companies established by Binance in Ireland.
At the request of regulators, Binance will set up a centralized head office. The cryptocurrency exchange has suffered several setbacks from financial regulators in recent months. The company quickly resolved to obey the demands of the authorities. Binance notably abandoned its derivative product offering in several countries before imposing Know Your Customer (KYC) verification on all its users.
Binance should turn its back on France.
A few weeks ago, Changpeng Zhao had hinted that Binance’s head office could be established in France. After announcing an investment of 100 million euros in France to develop the cryptocurrency ecosystem, the CEO of Binance had indeed granted a long interview to Les Echos. In the process, he revealed that Binance wants to obtain the status of PSAN “within 6 to 12 months”.
“France will be a natural choice for a regional, and even perhaps global , head office,” said Changpeng Zhao.
However, the choice of Binance is hardly surprising. By establishing its head office in Ireland rather than France, the exchange is expected to benefit from a reduced tax rate of 12.5%. In Ireland, the tax rate is indeed lower than in many other countries of the European Union. This low tax rate is also why many tech giants, such as Apple or Meta, have settled in Ireland.
To date, no official statement has come to confirm or deny the company’s plans. Asked by our colleagues from Decrypt, a Binance spokesperson assures that the exchange has not yet decided on a particular country:
“We are keeping all of our options open and are currently considering multiple locations to meet user needs, regulatory requirements and, of course, one location that meets our needs as a business. If any of these options are confirmed, we will provide updates.”
