Crypto.com Follows Binance into France, Invests $145M in Paris HQ

Binance is not the only crypto company seduced by France’s pro-business environment: today Crypto.com announced that it would base its regional headquarters in Paris.

In a Wednesday statement, the Singapore-based crypto exchange so it invested €150 million ($145.3 million) in France.

The money will go towards establishing the European headquarters in the capital and hiring local talent in compliance, business development and product. France’s market authority AMF last month gave Crypto.com regulatory approvaland registers it as a digital asset service provider.

Crypto.com COO Eric Anziani said the company looks forward to “continuing to engage with stakeholders across sectors to help facilitate the new digital economy in France and provide customers with a best-in-class crypto experience .”

Over 50 million people use Crypto.com’s products, according to the company’s own figures. In addition to an exchange, it also offers a Visa debit card and its own token, Cronos.

Like rival crypto exchange FTX, Crypto.com has bet big on sports marketing: Earlier this year it announced it would be a sponsor of next month’s FIFA World Cup. And last year it signed a $100 million deal with Formula One racing. Crypto.com has also entered into marketing agreements with NBA’s Philadelphia 76ers and Ultimate Fighting Championship.

But the company’s marketing spree, including a series of highly publicized commercials starring Hollywood actor Matt Damon, has arguably worked against it. This year, the company has had to make at least two major cuts in staff. In June, that got rid of of 5% of the workforce, then two months later a variety of sources told Decrypt even more employees were cut – citing the bear market. Nevertheless, the company now appears to be ready to continue an aggressive expansion into Europe.

By developing a headquarters in Paris, Crypto.com is following in the footsteps of Binance, the world’s largest cryptocurrency exchange. In May, Binance became the first major digital asset exchange to be licensed as a digital asset service provider in France.

The move made France the first European country to allow Binance to operate within its jurisdiction.

Binance chose France because of its “pro-business” attitude: CEO Changpeng Zhao praised the country’s “pro-crypto regulations” back in April, saying the country was “very uniquely positioned to be the leader of this industry in Europe.”

Zhao said the country’s government was “extremely savvy” about crypto. His comments came after a finance ministry official said France is working to support the development of the cryptocurrency industry.

France’s central bank last year tested crypto in a series of government bond deals in a major experiment with digital assets.