Binance to Expand Its Operations to the U.S. With FinCEN Approval

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by Bhushan Akolkar · 4 min read
Binance to Expand Its Operations to the U.S. With FinCEN Approval
Photo: Binance Blog

To launch its crypto trading services in the U.S., Binance has partnered with local firm BAM Trading Services Inc. The company will release further details of the launch in the coming days.

World’s largest Cryptocurrency exchange (by trading volumes) Binance has decided to expand its operations to one of the largest cryptocurrency market, the United States. To launch its crypto trading services in the U.S., Binance has partnered with BAM Trading Services Inc.

As part of the agreement, Binance U.S. will provide “cutting-edge matching engine and wallet technologies” to BAM. The announcement by Binance comes soon after it received the approval from the Financial Crimes Enforcement Network (FinCEN) earlier this week on June 11. Speaking on the launch of Binance U.S., company CEO and founder Changpeng Zhao said:

“We are excited to finally launch Binance.US and bring the security, speed, and liquidity of to North America. Binance.US will be led by our local partner BAM and will serve the U.S. market in full regulatory compliance.”

About BAM Trading Services

Although not much info is currently available about the business model of BAM Trading services. It is currently registered as a money service business with FinCEN with its listed address in San Francisco, California. CoinDesk reports that the registration document, however, notes that “FinCEN does not verify information submitted by the MSB,” as the document “reflects only what was provided directly” to the regulatory body.

On the other hand, BAM Trading Services has assured Binance that it will be supporting the crypto exchange in driving enough liquidity to the trading platform. A representative from BAM said:

“It is an honor to partner with Binance to launch the U.S. extension of Binance, leveraging its tier-one security and technology in tandem. We are committed to providing a secure and compliant platform, and beginning the start of a fruitful alliance with Binance.”

Binance Updates Its Terms And User Agreement

Binance has announced a major update to its internal policies while cracking down on suspicious users. In its updated policy on Friday, June 14, the crypto exchange stated that it is currently reviewing the accounts of its users to ensure that they follow all the KYC procedures. If anyone is found violating the rules, the exchange will withdraw trading and deposit permissions for those users. The company states:

“Binance constantly reviews user accounts to improve our platform security and to comply with global compliance requirements. Accordingly, some users may be required to furnish evidence showing that their account registrations are consistent with Binance’s Terms of Use. Binance regrettably cannot continue to serve users who are found to have violated the Terms of Use and are unable to demonstrate otherwise.”

The updated policy shall be effective 90 days from since September 12, 2019. Post that, users who aren’t in compliance with the exchange’s Terms of Use will no longer be able to make deposits or trade.

However, a strange thing that the updated user agreement mentions is that “Binance is unable to provide services to any U.S. person.” The news comes just in a day’s time after Binance formally announced the launch of U.S. exchange.

Besides, Binance has assured that it would bolster its security practices and compliance through a number of partnerships like KYC/AML tool provider IdentityMind and software provider Chainalysis.

Binance’s Push for Stablecoins

The Malta-based cryptocurrency exchange is currently working its way out on new projects in the crypto space. According to a Bloomberg report from last week dated June 5, Binance is working on issuing new stablecoins within the next few months.

Binance Chief Financial Officer, Wei Zhou told Bloomberg that the company’s goal is to make the stablecoins available for more global currencies. The company’s first stablecoin dubbed “Binance GBP” will be pegged to the British Pound. The company stated that it will be making of money through the fiat deposits just like its stablecoin competitor Tether does.

Although Binance plans to release different stablecoins, it is most likely to have the exception for a USD-pegged stablecoin.

With all the developmental projects, Binance’s native cryptocurrency Binance Coin (BNB) has been soaring high in the last few weeks. BNB is the seventh most-valued cryptocurrency with a market cap of $4.8 billion and currently priced at $34. The latest price surge comes after the validators of the Binance Chain proposed lowering the fee structure.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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