Home Crypto Binance: Headquarters in Ireland?

Binance: Headquarters in Ireland?

The question has now arisen for many weeks. In its recent press releases, Binance indicated its desire to have a head office. What the company had always refused to do until now. The outcome may be to be found today on the other side of the Channel, in Ireland.

1xbit

Faced with threats from regulators, Binance publicly shows its willingness to have a head office. An entity which would then have the capacity to discuss with the regulators of the countries in which the platform is established. It seems that the choice of the company has now fallen on Ireland. For obvious tax reasons.

A head office to deal with regulators

The Binance platform has always claimed its decentralized side. It is for this reason in particular that it showed a deep disinterest in the establishment of a head office. As regulators in many countries around the world pound the table against the platform, CEO Changpeng Zhao seems to want to ease the tensions. And at the same time respond to the wishes of these regulators to be able to communicate with a central entity.

In any case, this is the publicly presented opinion of regulators from countries such as Singapore, Italy, South Africa or the Netherlands. If Changpeng Zhao wants to make Binance a long-term sustainable financial institution, it would seem that abandoning the decentralized model is the only way out today.

Binance: Why Ireland’s Choice?

The primary motivation is obviously fiscal. In Europe, Ireland is known to have one of the lowest corporate tax rates. This argument has already won over many companies with global reach, such as Facebook and Google, which have already set up their European headquarters in Dublin, the Irish capital.

Good to know : Last week, Ireland announced that it wanted to ratify an OECD treaty to fight tax evasion. It would then be a question of raising the tax on the profits of companies with more than 750 million turnover from 12.5 to 15%. This rate would always remain much more advantageous than the majority of European countries.

The choice of Ireland seems in any case to be presented as probable by the CEO of the Binance company. The recent creation of three branches in Ireland has only increased the rumor. Thus, since September, Binance Technologies, Binance Holdings (APAC) and Binance Service Holdings are three entities established in Ireland.

But changing the regulatory and fiscal framework could also have a role to play. Recall that Binance achieved for the year 2020, a profit of between 800 million and 1 billion dollars. The Chinese company should therefore be impacted by the OECD treaty. Either way, raising the tax rate from 12.5% ​​to 15% would still allow Binance to benefit from more favorable conditions than elsewhere in Europe. In fact, on the old continent, the average corporate tax hovers around 27%. By the way, Ireland is much more flexible in terms of dividend taxation.

No Comments

Leave A Reply

Please enter your comment!
Please enter your name here

Exit mobile version