On Tuesday, April 19, Binance US, the US arm of the Binance crypto exchange, announced that it had received a money transmitter license from the Commissioner of Financial Institutions of Puerto Rico.
Binance US Progress in 20222
Since the beginning of 2022, Binance US has secured money transmitter licenses from 4 US jurisdictions. They include Connecticut, West Virginia, Wyoming, and now Puerto Rico. The company has expanded its presence across the US quite significantly.
This news comes nearly two weeks after the exchange closed one of its biggest seed rounds in the crypto sector. It managed to raise $200 million from investors and received a valuation of $4.5 billion. However, that is still less than the $400 million that FTX US managed to raise during a funding round, at a valuation of $8 billion.
According to the company’s CEO, they were thrilled to build on the momentum of the successful seed round with the receipt of the license. He added that they were grateful for the trust the Puerto Rican authorities had shown in them. Brian Shroder, the CEO added that:
“As America’s home to buy, trade and earn digital assets, our goal is to offer the most compliant and customer-centric exchange in all 50 states and territories.”
Shroder stated that Puerto Rico was an important growth market, and they were looking forward to continuing to offer residents access to secure, reliable, and low-fee trading.
Plans to Launch New Products
With multiple licenses and new funding, Binance US will enhance the products it offers its users. The company also highlighted its education initiatives designed to grow awareness of the crypto sector. Binance plans to launch new services and products soon. According to the company, they now operate in 45 US states, and seven territories. People in these jurisdictions have access to some of the lowest fees and over 90 crypto coins.
Why Binance US Needs All These Licenses
The reason why Binance US launched was to navigate the complex regulatory environment that is in the US. Because there is no federal law regulating the crypto sector, crypto trading platforms usually have to go state by state and get a license to operate there. Since each state has its own compliance requirement, it can be quite complex.
Only large crypto exchanges with extensive legal teams can consider expanding throughout the US. Thus far, Binance appears to be committed to spreading throughout the US despite how complex it is. The fact that it is still not able to operate in all 50 states, despite its many resources, and experience, shows just how complex it can be to operate a crypto exchange in the US.
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