The United States has been a regulatory nightmare for crypto exchanges and industry players over the last few months.
The government and regulators in the country have intensified scrutiny on the crypto industry as they seek to ensure that they have control over the activity on crypto markets.
Several exchanges have been barred from engaging in business with citizens from the United States.
These exchanges have been found to be noncompliant with regulations in the United States, and they have been forced to stop their operations in the country.
Some exchanges have changed the way the business operates in order to shift towards being compliant with American regulations.
Binance creates new exchange
Binance, one of the world’s leading exchanges, announced that they would be creating a new exchange for their American clients.
Binance had to create a new exchange specifically for the US market because their main exchange carries tokens that do not comply with regulations set in the country. The main exchange will stop serving clients in the United States on the 12th of September.
The new Binance exchange was expected to be launched in early 2020 as the company works on the necessary infrastructure to set up the exchange. Recent developments indicate that the US centric exchange may be launched sooner than anticipated.
The exchange will join other online digital cryptocurrency exchanges in conduction business in the US.
Changpeng Zhao, Binance’s CEO, told Cheddar that their US exchange could be launched within the next month or two. Zhao said that he does not want to put a date to it but his team has been working very hard on the project and they could launch soon.
BAM Trading Services has partnered with Binance to ensure that regulatory compliance is maintained. Catherine Coley, a former executive at Ripple, was appointed as the CEO of BAM in July.
Regulatory restrictions in other places
Different American states have different regulations regarding cryptocurrency trading in their jurisdictions.
It has not yet been determined where Binance US will be launched first but it has been stated that the exchange will not be available in New York on its launch. An exchange operating in New York requires a BitLicense and neither BAM nor Binance have this license.
Binance entered the partnership with BAM because the latter is registered and regulated by the US Financial Crimes Enforcement Network (FinCEN) and other regulators in the US.
None of the bodies which regulate BAM operate in New York and the state has some strict regulations and compliance in the state is expensive. It wouldn’t be much of a surprise to see Binance completely avoid New York as part of their business strategy.
Zhao’s company recently announced a list of tokens they are considering for the US exchange. The new platform will carry about 30 tokens if all the assets under consideration are accepted.
Many coins violate US regulations and Binance is trying to limit the risk of being on the wrong side of regulations. If the exchange is to be launched in the next couple of months, the list of crypto assets to be traded on Binance US will be released soon.