- Binance has been around for three years.
- The United States is one state closer to national approval, but regulatory challenges remain.
- Binance.US is now available in Louisiana, bringing the total number of states where the exchange is available to 45.
According to Binance.US, many states require different licences from multiple regulatory organisations, making approval a protracted process.
Customers in Louisiana can now buy, sell, and trade cryptocurrencies on Binance.US, three years after it was founded. Binance.US, the headquarter-less crypto exchange Binance’s US partner company, is currently available in 45 US states.
Residents of Hawaii, Idaho, New York, Texas, and Vermont will have to wait for Binance.US services to become available.
“Each state, including Louisiana, has its own set of standards, and we’re working hard to ensure that we’ll be allowed to function in all 50 states eventually,” said Sidney Majalya, Binance.US’ chief risk officer. “We’re excited to bring our services to Louisiana, and, like other states, we’re looking forward to engaging with state officials to demonstrate our compliance-first approach.”
Wyoming was the most recent state to be removed from Binance.US’ restricted list in March. The barriers to entry into the US have been significant, with each state requiring distinct licences from various state agencies.
The Connecticut Department of Banking required Binance.US to get a money transfer licence before it could begin operating in Connecticut in January. The Georgia Department of Banking and Finance required Binance.US to get a supplier of payment instruments licence.
Binance first prohibited US users in September 2019 due to rising legal restraints, and then announced the launch of Binance.US through a cooperation with BAM Trading Services.
To access Binance.US, customers in permitted states have to complete more stringent know your customer (KYC) criteria than Binance previously needed, including uploading images of acceptable ID and providing social security numbers.
Given that other US-based centralised exchanges have comparable limitations, demand for Binance.US has remained robust in recent years, according to Majalya.
“So far in 2022, we’ve seen high demand in Connecticut and elsewhere,” Majalya said. “While it’s too early to forecast demand in Louisiana, we expect our cheap rates and unique user experience to continue to draw loyal clients from across the country.”
Majalya and a representative for Binance.US were unable to provide any information on when the remaining five states could receive approval.
In a statement, Binance.US said, “The firm already operates in 45 jurisdictions across the United States and is working closely with the remaining state regulatory bodies to acquire permits so it can offer its services across all 50 states and territories.”
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.
