Leading cryptocurrency exchange Binance expects this year to receive net profit in the amount up to $1 billion. The trading platform has already registered approximately $300 million of revenue in the first half of 2018, as well as a fivefold increase in the number of users. These data show significant growth in Binance, which is taking steps to global expansion.
The profitability of cryptocurrency exchanges practically does not depend on whether the market falls or rises, and whether the clients income or suffering losses. This year, when cryptocurrency investors suffered the greatest losses in a long time, one of the largest cryptocurrency exchanges by trading volume Binance has already earned $300 million dollars for the first half of 2018. Moreover, according to the CEO Campana Zhao (Changpeng Zhao), the trading platform expects to receive net profit in the amount of $500 million to $1 billion this year.
The average daily turnover on Binance, which was launched about a year ago, approximately $1.5 billion, said the founder and CEO of the site. In an interview with Bloomberg, Chanpen Zhao also said that its platform was now 10 million users, while in January this year there were about two million.
Binance seriously increased since July last year, after opened to users the doors thanks to a successful ICO for $15 million. Trading volume on the platform was growing in parallel with the prices of cryptocurrencies in the end of 2017 – and then exchange the recorded daily transaction of up to $11 billion.
Binance was founded in China, but left the country before the ban on the cryptocurrency trade, imposed by the authorities of Beijing, entered into force in September last year. The exchange moved the headquarters to Japan, and earlier this year opened an office in Taiwan.
In March, the Japanese financial services Agency has issued the site a warning and asked the stock exchange to cease operations in the country. It was reported that the company threatened criminal prosecution for working without a license. After regulatory pressure on the exchange increased both in Japan and in Hong Kong, where the platform also worked Binance decided to move
Malta Binance intends to establish a stock exchange to exchange Fiat currency into digital and support deposits and withdrawals in traditional currencies, adding currency pairs with EUR and GBP. Malta is an island state member of the EU, established
itself as a cryptocurrency-friendly jurisdiction, along with Gibraltar
and Switzerland. Recently the Parliament in Valletta adopted a new regulation
for kriptonyte in the country.
The government of Malta welcomed the move Binance, which was not the only cryptocurrency exchange, attracted by a favorable business climate that the government is trying to create for the cryptocurrency business. Another platform with Chinese roots OKex announced
in April he’s moving to the island. A similar statement
about moving made and the Polish stock exchange Bitbay, which was also forced to leave their home jurisdiction because of pressure from regulators and banks.
Earlier this month Binance for a few hours suspended
trade due to anomalous transactions with Syscoin. Last month, the site announced a collaboration
with the Jersey authorities, which will create about 40 new jobs.