The Joint Venture between Binance and LCX AG will not proceed. LCX CEO Metzger remains confident in LCX’s future as the company keeps expanding internationally.

Binance’s Liechtenstein venture is history. It was founded in August 2018 as a joint venture between Liechtenstein-based LCX AG and Malta-based cryptocurrency exchange Binance and should become a part of the Binance blockchain ecosystem.

The goal of the joint venture was to launch a regulated trading platform for crypto-assets and security tokens, licensed by the Financial Market Authority Liechtenstein (FMA). At the time, Binance CEO Changpeng Zhao said he was “very excited to bring the relevant experience and best practices to grow our team in Liechtenstein.” LCX CEO Monty Metzger saw the cooperation as a way to “establish new standards for the blockchain industry.”

But that was the past. According to Liechtenstein’s commercial register, Binance LCX AG – the joint venture company, which is not the same company as LCX AG – had been in liquidation since December last year. In August 2018, Binance reportedly wanted to launch a team of 10 to 15 in Liechtenstein, which to-date has not happened.

No negative effects on LCX’s future

Binance has had a rough ride in 2019. There was a security breach in May, followed by wash-trading accusations later in the year. More recently, the exchange has also found itself in hot water in China, where the exchange initially began. It was banned from Weibo, China’s leading microblogging website, reportedly due to their support for the Hong Kong protestors.

LCX had cleaned up accusations made in 2019. According to Frank Haun from Liechtenstein’s public prosecution office, the Financial Intelligence Unit (FIU) had provided a report to the public prosecution office in November 2019 concerning the business activities of LCX AG which has led to initial investigations regarding suspected money laundering activities. “These investigations were dropped on 10th January 2020,” says Haun.

LCX CEO Monty Metzger does not see the termination of the partnership with Binance as a blow to LCX. He remains confident, explaining his team moved into a new office building in January 2020 and planned to expand into Switzerland with a second office in Zug. The cooperation between LCX and Wesley Snipes seems unaffected as well. “Just last week there was another personal meeting between LCX and Wesley Snipes in Davos. The project will move ahead,” says Metzger.

Image: ©Binance LCX