Friday, June 14, 2019

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

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

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 notes that with the launch of its new dedicated crypto trading platform for the U.S, all the existing U.S. customer’s of Binance will have to shift their accounts to Binance U.S. Binance has given its U.S. customers a 90-day window for this shift after which, they can still access their wallets and funds but can’t deposit or trade.

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.

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

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

Cryptocurrency is a digital currency that uses encryption (cryptography) to regulate the generation of currency and verify the transfer of funds, independently of a central bank. Cryptography is the practice and study of techniques for secure communication in the presence of third party adversaries.

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