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Gate US may now offer virtual asset services in some states of the country.
The United States arm of Gate.io, Gate US has received the “go-ahead” to start offering virtual asset services in some states within the country. According to the firm, this is a welcome development that brings it closer to launching its services fully, across the entire United States.
Gate.io Reiterates Its Commitment to Regulatory Compliance
Gate.io has always strived to be in compliance with regulatory requirements and the new approvals are a testament to that fact. According to Lin Han, founder and president of Gate US as well as Gate.io, the firm is still not done and will strive to obtain even more licenses as time progresses. The statement reads in part:
“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.”
Going by Tuesday’s press release, there’s no official information regarding the states where Gate US may operate for now. However, it did mention categorically, that it is yet to accept US-based users at this stage, while its services will also not extend to residents in New York, Hawaii and the territory of Puerto Rico.
U.S. Market Attraction and Its Stringent Regulations
By virtue of its recent approvals, Gate US joins a number of other top exchanges to have expanded into the US. Most notable among such exchanges are Binance, Kraken, Coinbase, and Gemini. FTX was another popular exchange in the region whose US arm, FTX US, recently filed for bankruptcy.
However, it might be worth noting that the US is gradually stifling its regulatory requirements for exchanges. But this is not exactly unexpected. Especially seeing as the outgoing year saw several failures beginning with the crash of the Terra ecosystem.
In a December 20 blog post, Gate.io forecasted that 2023 will usher in a new regulatory era. According to the post, this is to curtail further failures as was seen with the several bankruptcies recorded in 2022.
Also, a US lawmaker recently proposed bills that will require exchanges to give full disclosure of their reserves. They will submit the proofs to the United States Securities and Exchange Commission (SEC). But that might prove to be a problem for Gate.io. At least, in the short term.
Recall that Armanino —the firm responsible for Gate’s proof of reserve attestation, ended its crypto auditing services on December 15. So, if the laws should be passed immediately, the likes of Gate.io will have challenges staying operational in the states.