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The license means that Binance.US can legally operate on the island.
In what has been a flurry of regulations, Binance.US has yet again obtained a money transmitter license in the United States. Following regulatory approval in West Virginia and Connecticut, the company obtained its third money transmitter license from Wyoming in March. Now, Binance.US has obtained approval from the Puerto Rico Office of the Commissioner of Financial Institutions.
Puerto Rico or Crypto Rico?
Known for its crypto-friendly policies, Puerto Rico has attracted interest from the side of the cryptocurrency community. For example, the island permits huge tax breaks when you spend at least 183 days on the island. Brock Pierce has been particularly involved in efforts to bring more entrepreneurs and investors to the island.
Shroder confirmed the importance of the Puerto Rican market for crypto growth while appreciating the regulators for trusting the firm. Also, he said:
“We look forward to continuing to offer its residents secure, reliable, and low-fee access to a robust selection of tokens.”
Money Transmitter License Necessary for Regulatory Compliance
According to the Anti-Money Laundering Act of 2020, all transactions in value that substitute for currency are subject to reporting requirements and money transmitter regulations. Thus, the license means that Binance.US can legally operate on the island. According to the statement released by the exchange, the firm will be able to offer its services in 45 states and seven territories.
Binance’s pursuit of regulation has been likened to the modern-day give unto Caesar what belongs to Caesar by Forbes. It has become clear that the firm must steer clear of regulators if it is to continue to grow its market share.
Brian Shroder, Chief Executive Officer of Binance.US agrees. He states that the exchange’s goal is to be entirely compliant with regulations in a way that reassures the customers across all 50 states and territories. The crypto exchange offers the lowest fees on over 90 tokens that are listed on the exchange.
The license is coming on the heels of the seed round. Earlier in the month, Binance.US raised over $200 million, achieving a pre-money valuation of $4.5 billion. Binance.US plans to use the funds to improve its spot trading platform and push new products and services. It also announced plans to invest some funds in marketing and consumer education initiatives.