Binance sets up offices in New Zealand after receiving regulatory approval

By: Michael Wilson

September 30, 2022 11:22 PM

Lawmakers and regulators in New Zealand have not imposed rigorous guidelines for crypto firms to operate in the country, and citizens are free to use cryptocurrencies as they see fit.

Binance, a major cryptocurrency exchange, has set up a new office in New Zealand and is officially registered with the Ministry of Business, Innovation, and Employment there.

Binance announced on Twitter on September 29 that it had obtained financial services provider status in New Zealand, thereby granting locals access to the exchange's spot trading, nonfungible token, and staking offerings. Authorities in Dubai, Abu Dhabi, Kazakhstan, and Italy all gave Binance the green light to launch satellite offices, prompting the company's decision to relocate to the crypto-friendly Pacific nation.

The CEO of Binance, Changpeng Zhao, recently stated that New Zealand is an exciting market with a history of strong fintech innovation.

Neither crypto firms operating in New Zealand nor Kiwis are restricted in their use of cryptocurrencies by overly onerous regulations imposed by the country's lawmakers and regulators. In 2019, the country's tax authority ruled that crypto earnings were legitimate, and the Reserve Bank of New Zealand has been looking into the pros and cons of establishing its own digital currency.

Huobi Global became licensed to offer financial services in New Zealand in June, but it has since halted offering derivatives trading to Kiwis in order to comply with local law. New Zealand has a population of about 5.1 million, making it a smaller market than neighboring Australia, where 4.2 million people are said to own cryptocurrency.

Despite its global expansion, Binance has drawn the attention of some governments. Binance Holdings was fined $3.3 million in July by the Dutch central bank for providing cryptocurrency services without proper registration. On September 22nd, the company also established a group called the Global Advisory Board to address regulatory concerns regarding the widespread use of cryptocurrencies, blockchain technology, and the World Wide Web.