Binance, the world’s biggest exchange by volume, will be launching its US operations by November. “There’s a lot of work going on….I would say in a month or two,” Changpeng Zhao, or CZ as he is popularly known, told online news publication Cheddar when asked about a possible launch date. Binance has partnered with BAM Trading Services, a firm that is registered with FinCEN as a money services business with a San Francisco address. The firm will help Binance navigate regulatory compliance in the United States.
Navigating Regulation in the U.S.
In his conversation with Cheddar. Zhao did not seem overly concerned about the existing U.S. legal framework for cryptocurrencies styming Binance’s growth. He said the country has historically made very clear regulations. “”At the same time, some early adopters in this space will be better rewarded…even though there are uncertainties in the regulatory space, but we’re willing to try,” he said, adding that the exchange aims to be “fully compliant” with existing regulations.
Currently cryptocurrency trading is governed by a patchwork of regulations at the state level. Exchanges interested in offering trading services are required to register as money services businesses in each state. New York, the center of financial trading, has some of the toughest regulations governing cryptocurrencies and exchanges must obtain a BitLicense in order to operate in the state. Binance will not launch in New York, which has some of the toughest crypto regulation laws in the US.
About 20 percent of all traffic on the Binance exchange originates in the US. There are currently 150 coins and crypto tokens traded at the exchange but the exchange’s U.S. division plans to list 30 tokens initially. Interestingly, most of the coins that it plans to launch on the new exchange are also offered on the Coinbase exchange.