Personal Finance/news
Binance New Zealand continues search for a local bank to take its business on
6th Apr 23, 11:07ambyGareth Vaughan
Binance New Zealand, the local arm ofthe world’s largest centralised digital asset exchange, says all its 260,000 registered users to date are resident in NZ.
Binance NZ launched last October following registration on the Ministry of Business, Innovation & Employment (MBIE) overseen financial service providers' register (FSPR). This FSPR registration, which does not in itself mean regulation by a NZ regulator, enables Binance NZ to offer its services to customers in both NZ and overseas. (There's more about Binance's FSPR registration here).
In comments to interest.co.nz attributed to Ben Rose, Binance's Regional General Manager for Australia, New Zealand and the Pacific Islands, Binance NZ says it has260,000 registrations across the country, and all Binance NZ users are resident in NZ.
Rose, who describes himself on LinkedIn as "a growth-focused sales and marketing executive," says the most popular activity among Binance NZ users is spot trading, converting crypto to crypto.
"The most popular coins Kiwis have traded over the last seven days, as at 31 March 2023, are Bitcoin, Ethereum, USDC, XRP and Conflux," Rose says.
To date Binance NZ has been unable to find a local bank prepared to bank its business. For Binance NZ customers Rose says this means they're not able to use the Binance NZ platformto buy crypto direct from their bank account, or to sell crypto direct into their account.
"Users wishing to buy and sell crypto into [the] NZ dollar must do so via their credit and/or debit cards," Rose says.
"Binance NZ remains in ongoing contact with a number of local banks to understand if and when their appetite may change. Binance NZ is also in dialogue with regulators around this challenge faced by many in the Web3 industry."
Last week the United States Commodity Futures Trading Commission (CFTC) launched civil enforcement actionagainst the Binance group. The CFTC accuses Binance of willful evasion of US federal law and operating an illegal digital asset derivatives exchange, or running a calculated strategy of regulatory arbitrage for commercial benefit. Neither Binance NZ nor its immediate parent company, which is registered in Ireland, were named in the CFTC case.
Binance owner and CEO Changpeng Zhao, who was himself named among the defendants, described the CFTC move as "unexpected and disappointing."
"Upon an initial review, the complaint appears to contain an incomplete recitation of facts, and we do not agree with the characterization of many of the issues alleged in the complaint,"Zhao says.
Asked whether Binance NZ had anything to add in relation to the CFTC legal action, Rose says Zhaohasmade the Binance position clear.
"For Binance NZ, as in all local markets, we are looking to engage positively with local regulators. To that end, we are a New Zealand registered financial services provider and have participated actively in the Reserve Bank of New Zealand's recent 'Future of Money' public consultation process to help inform what a thriving and well-regulated crypto ecosystem could look like in this country," says Rose.
*This article was first published in our email for paying subscribers.See here for more details and how to subscribe.
BinanceCFTCcryptocurrenciescrypto assetsfinancial service providers registerstablecoinsBitcoinEthereumUSDCXRPConfluxBen RoseChangpeng Zhao
Your access to our unique and original content is free, and always has been.
But ad revenues are underpressure so we need your support.
Supporters can choose any amount, and will get a premium ad-free experience if giving a minimum of$10/month or $100/year. Learn morehere.
We welcome your comments below. If you are not already registered, pleaseregister to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory commentsand will de-register those repeatedly making such comments. Our current comment policy ishere.
- Log in or register to post comments
byKing of the whiners|6th Apr 23, 11:23am1680737002
What could possibly go wrong?
- Log in or register to post comments
Up
3
byJ.C.|6th Apr 23, 11:41am1680738099
What could go wrong is that the Binance NZ customers leave their digital assets on the exchange and lose access to those assets. If they've put in the time and effort, they should know how to self custody and will only use the exchange to buy / sell / trade (if that's what they do).
- Log in or register to post comments
Up
1
byCrazy Horse|6th Apr 23, 11:46am1680738367
In 1913 in the USA, a dollar today in 2023, would of only been worth 2 cents ......What could possibly go wrong?
- Log in or register to post comments
Up
byJ.C.|6th Apr 23, 12:03pm1680739397
In 1913 in the USA, a dollar today in 2023, would of only been worth 2 cents ......What could possibly go wrong?
A dollar is still a dollar. What has happened is the loss of purchasing power of that dollar.
- Log in or register to post comments
Up
byCrazy Horse|6th Apr 23, 8:48pm1680770882
Ed Zachary .........or Exactly !
- Log in or register to post comments
Up
byenclavecryptologist|6th Apr 23, 11:59am1680739141
Opaque, centralised systems with no deposit insurance for its customers doesn't want to back technology, which, amongst other benefits, enables transparent, insurable, multi-issuer currencies.
Judges new industry to be the risk, rather than self-reflecting or seeking to understand what the 'programmable' aspect of programmable money, assets, and products actually means and could entail for greater financial stability.
- Log in or register to post comments
Up
byDavid6766|6th Apr 23, 12:04pm1680739489
Imagine being able to take your funds from the bank and putting them into crypto so they can be safely stored on your own wallet rather than leaving them in the bank for them to leverage in the fiat ponzi scheme.
Surely a crypto wallet is better than gold or cash under the bed.
- Log in or register to post comments
Up
byJ.C.|6th Apr 23, 12:15pm1680740105
Great timing:
Officials at Dubai’sVirtual Assets Regulatory Authorityhave in recent weeks asked Binance to provide more information on its ownership structure, governance and auditing procedures, said the people, who requested anonymity to discuss private deliberations. VARA is requesting similar information from all international companies seeking permits, three of the people said.
https://www.bloomberg.com/news/articles/2023-04-05/dubai-asks-binance-o…
- Log in or register to post comments
Up
bydbbr|6th Apr 23, 12:35pm1680741312
I doubt any NZ banks want to touch this now or in the foreseeable future.
- Log in or register to post comments
Up
1
byJ.C.|6th Apr 23, 1:32pm1680744732
While America's leading banks are gearing up to be custodians of digital assets. It might sound like a conspiracy, but the establishment is at war with the likes of Binance because they want to OWN the game.
- Log in or register to post comments
Up
byFrank Sobotka|6th Apr 23, 5:44pm1680759847
They really aren’t.
Crypto is over before it even began
- Log in or register to post comments
Up
1
byBaywatch|7th Apr 23, 8:59am1680814742
Care to expand Frank...?
- Log in or register to post comments
Up
byFrank Sobotka|7th Apr 23, 6:18pm1680848316
A low interest rate plaything which never went mainstream despite having more vociferous supporters than vegan cross fitters.
In current climate of normalised rates it is shown to be the Ponzi scam we all knew it was all along. The collateral damage being inflicted on those individuals and banks foolish enough to get close to it.
- Log in or register to post comments
Up
bylonewolfnz|6th Apr 23, 2:44pm1680749096
So given my crypto windfall cash out from last year I am now a private banking client.
I am forming a holding company to hold my new (but much smaller) crypto holdings. When asked what it was for I was honest and was told it's not possible as they don't allow banking for (quote) "trading bit coins" [sic]
I told them it was illegal and that they were being sued in Australia for the same thing. Moved by business back to ASB who were okay it with.
A month later my old private banker came back to me to apologise and say they were wrong but I was already gone and with the new bank.
This bank was the same one that paid me $10,000 to move my business to them (back when I had a big mortgage)
- Log in or register to post comments
Up
1
byJ.C.|6th Apr 23, 2:53pm1680749623
Similar position Wolfie. My crypto holdings are owned by a registered offshore company of which I am also a representative director. Tax compliant outside NZ.
- Log in or register to post comments
Up
1
byLASSET|7th Apr 23, 2:28pm1680834489
J.C I havent heard of anyone doing this, what are the pros and cons? Simply that you can trade and use a NZ bank account for transfers without getting hassle? Or are there significant tax advantages when you sell?
- Log in or register to post comments
Up
byOfficebound|6th Apr 23, 5:21pm1680758510
It really says a lot about his industry that he referenced data from 'the last 7 days'
Cutting edge, well informed, and temporary.
- Log in or register to post comments
Up
3
byDriftwood|6th Apr 23, 10:56pm1680778617
I don't know why we have a government we just follow whatever the US does.
- Log in or register to post comments
Up
bymark_a|7th Apr 23, 7:27am1680809254
I wonder if registrations = users?
Sounds like a big number to me. I’m dubious.
- Log in or register to post comments
Up
1
byMacrology|11th Apr 23, 11:33am1681169590
I'd be surprised if 6.3% of New Zealand's working age population (>=15yrs) has a Binance account.
- Log in or register to post comments
Up
