Binance obtains third money transmitter license in US

abdelaziz Fathi

Binance.US, the American outpost of the world’s biggest crypto exchange, has obtained its third Money Transmitter licenses in the US. Following the receipt of approvals in West Virginia and Connecticut, the FinCEN-registered company received formal notice from the Wyoming Division of Banking that its application was accepted.

Binance CEO Changpeng Zhao

Money Transmitter licenses enable Binance.US to provide its services in 45 out of 50 US states as an independent offering to its customers, without relying on a third party. However, it will be required to comply with all federal and state laws, including ‘know your customer’, anti-money laundering and related regulations.

The exchange said that the Wyoming licence further underlines its focus on complying with legal and financial regulations across all markets in which it operates. Binance CEO Changpeng Zhao said earlier their US affiliate may raise a “couple hundred million” dollars in a funding round, but he does not know the exact number. He also told tech publication The Information that depending on business growth, Binance.US is eyeing a potential IPO route to go public within three years. CZ said Coinbase, which became the first crypto exchange to go public, helped set up a playbook for crypto firms to do IPOs.

Wyoming push into crypto continues

Brian Shroder, Chief Executive Officer of Binance.US, said, “We continue to prioritize compliance and operational excellence, be it through building out our team or working closely with regulators on licensing and other initiatives. Wyoming and its crypto-savvy population have emerged as champions of blockchain technology, and we are pleased to deepen our presence in the state with the support of the Wyoming Division of Banking.”

Wyoming has been developing its crypto initiative since 2018 when it announced plans to draft special-purpose banking legislation to cater to crypto companies. Now, the state already has a comprehensive framework and supervisory process in place for crypto banking licenses, which does not exist elsewhere.

In 2020, the state regulator began taking applications to charter a new type of crypto-friendly bank. Shortly after, Kraken secured approval to launch a crypto bank under an SPDI charter. The San Francisco-headquartered firm Kraken applied for a bank charter under Wyoming’s special-purpose depository institution law.

An SPDI bank charter permits Kraken to operate an independent bank that will reduce reliance on third-party financial institutions and allows the exchange to provide deposit-taking, custody and fiduciary services for digital assets.

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