Binance.US launches its services in Puerto Rico
Binance.US, the American outpost of the world’s biggest crypto exchange, has obtained its fourth Money Transmitter license in the US. Following the receipt of approvals in Wyoming, West Virginia and Connecticut, the FinCEN-registered company received formal notice from Puerto Rico 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 45 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.
The new approval comes shortly after Binance.US closed its first funding round after raising more than $200 million at a pre-money valuation of $4.5 billion. While it has seen greater trading volumes than other rivals in the US, Binance.US still trails far behind Coinbase.
“Binance.US account registration and verification services are now open to residents of Puerto Rico. Puerto Rico residents can enjoy the same levels of access as U.S. residents from permitted states,” the exchange said.
Binance upgrades regulatory profile
“Puerto Rico, in particular, is an important market for the growth of crypto and we look forward to continuing to offer its residents secure, reliable, and low-fee access to a robust selection of tokens,” Binance.US CEO Brian Shroder added in a statement.
Dozens of crypto entrepreneurs and firms have been heading en masse to Puerto Rico as the US territory adopts crypto-friendly policies, including huge tax breaks. In particular, US citizens can keep ahold of their American passports while at the same time avoid paying any taxes on capital gains.
Earlier in March, the digital asset-focused subsidiary of Monex Group’s TradeStation announced the soft rollout of its services in Puerto Rico. Trading launched imminently, the company indicated.
Binance has seen plenty of news headlines in recent times as regulatory focus returns to the crypto space. Most recently, its global business has received its in-principle approval (IPA) from the Abu Dhabi Global Market’s (ADGM) Financial Services Regulatory Authority (the FSRA). The licence allows the crypto giant to operate as a broker-dealer in digital assets.
While continuing to focus on regional expansion, Binance’s pursuit of an IPA (and eventual FSP) is its third approval in the Middle Eastern region after Bahrain and Dubai.