Gate.io gets nod to launch crypto service in the US
Gate.io’s US-based arm, Gate US, has been granted a license to offer virtual asset services in the United States, according to a press release on Tuesday.
Without revealing further details, Gate.io said it has secured regulatory approval to operate as a blockchain and digital asset infrastructure provider. The nod greenlights the exchange to launch its exchange platform and digital asset trading services to retail and institutional clients in several US states.
Lin Han, founder and president of Gate US as well as Gate Group, says that “Gate US is committed to regulatory compliance. In alignment with such commitments, Gate US has proactively registered as a money services business with FinCEN and obtained some money transmission licenses or similar to operate, and is currently working to obtain more.”
The news comes shortly after Gate.io has obtained authorisation to operate in Lithuania, which covers many business areas including crypto-asset trading, custodian service, digital asset wallet, and portfolio management.
Obtaining this Lithuanian crypto licence is a significant milestone for Gate.io and facilitates its registration in other European countries, expanding its scope of service to reach more users worldwide.
Having completed its registration as a Virtual Assets Service Provider (VASP), the approval enables Gate.io to provide both cryptocurrency exchange and wallet services. It also puts the firm on a firmer regulatory footing while offering its crypto exchange, blockchain, DeFi platform and more in compliance with local anti-money laundering and counter-terrorist financing (AML/CFT) laws.
Among other benefits, Gate.io will be able to establish relationships with traditional financial institutions like banks, which enables its customers to convert their cryptocurrency to fiat money or vice versa on the platform.
As it is looking to expand globally, Gate.io had secured in August a license to offer crypto custodial services in Hong Kong. It also launched operations in Malta after its technology unit received the regulators’ nod as a virtual financial assets service provider, allowing it to operate an exchange and offer custodian services in the country.
The move also comes in anticipation of an EU-wide regulatory framework that will grant passporting rights for crypto firm working across the continent. Set to go into effect in 2024, the proposal offers a bespoke legislative regime for markets in crypto-assets (dubbed ‘MiCA’) and relevant service providers not covered elsewhere in the EU financial services regime.
