Binance expands US business with new license in Nevada
Binance.US, the American outpost of the world’s biggest crypto exchange, has obtained its seventh Money Transmitter license in the US.
Following the receipt of approvals in six US states, the FinCEN-registered company received formal notice from the Financial Institutions Division of Nevada Department of Business and Industry that its application was accepted.
Binance currently offers crypto spot trading to both retail and institutional clients. However, it is required to comply with all federal and state laws, including ‘know your customer’, anti-money laundering and related regulations.
Money Transmitter licenses enable Binance.US to provide its services in 46 out of 50 US states as an independent offering to its customers, without relying on a third party. The exchange, which launched in 2019, is also available in eight territories and plans to expand services to all US states and territories in the future.
Nevada is the seventh jurisdiction in which Binance.US has secured a Money Transmitter License, following West Virginia, Connecticut, Wyoming, Rhode Island, Idaho, and Puerto Rico. Through its licenses and those of its partners, Binance.US currently offers trading on 120+ token. While it has seen greater trading volumes than other rivals in the US, Binance.US still trails far behind Coinbase.
“We continue to take the necessary steps to ensure we are operationally compliant across the United States, our customers’ assets are secure, and our platform is safe and transparent. Receiving our Money Transmitter License in Nevada is further evidence of our ongoing compliance efforts, and we are thankful for the time and trust of the Nevada Department of Business and Industry,” said Brian Shroder, Chief Executive Officer of Binance.US.
Binance.US was reportedly looking to extend its seed round with a follow-on fundraise of up to $50 million. It will be Binance.US’ second fundraising after the exchange raised about $200 million in April at a pre-money valuation of $4.5 billion.
Last year, Binance CEO Changpeng Zhao said that depending on business growth, Binance.US is eyeing a potential IPO route to go public within three years. At the time, CZ added that Coinbase, which became the first crypto exchange to go public, helped set up a playbook for crypto firms to do IPOs.
Binance has launched its operations in the US market in late 2019 via a partnership with a FinCEN-registered company, BAM Trading Services. The exchange has licensed its matching engine and wallet technologies to its US partner, which handles operations in compliance according to local regulations.