Binance obtains a third money transfer license in the United States

Binance.US, the US outpost of the world’s largest crypto exchange, has secured its third US money transfer licenses. Following receipt of approvals in West Virginia and Connecticut, the FinCEN-registered company received an official notice from the Wyoming Division of Banking that its application was successful.

Changpeng Zhao, CEO of Binance

Money Transmitter licenses allow Binance.US to provide its services in 45 of the 50 US states as an independent offering to its customers, without depending on a third party. However, it will be required to comply with all federal and state laws, including “know your customer”, anti-money laundering and related regulations.

The exchange said the Wyoming license further underscores its focus on complying with legal and financial regulations in all markets in which it operates. Binance CEO Changpeng Zhao said earlier that its US subsidiary could raise “a few hundred million” dollars in a funding round, but he doesn’t know the exact number. He also told tech publication The Information that depending on the company’s growth, Binance.US is considering a potential IPO route to go public within three years. CZ said Coinbase, which became the first crypto exchange to go public, helped put together a playbook for crypto companies to do IPOs.

Wyoming’s push into crypto continues

Brian Shroder, Managing Director of Binance.US, said, “We continue to prioritize compliance and operational excellence, whether that’s strengthening our team or working closely with regulators on licensing and other initiatives. Wyoming and its crypto-savvy population have become champions of blockchain technology, and we are excited to deepen our presence in the state with the support of the Wyoming Division of Banking.

Wyoming has been developing its crypto initiative since 2018, when it announced plans to draft special-purpose banking legislation to meet the needs of crypto companies. Now, the state already has a comprehensive framework and oversight process for crypto-bank licensing, which does not exist elsewhere.

In 2020, the state regulator began accepting charter applications from a new type of cryptocurrency-enabled bank. Soon after, Kraken got approval to launch a crypto bank under an SPDI charter. Kraken, headquartered in San Francisco, has applied for a bank charter under Wyoming’s Special Purpose Depository Institutions Act.

An SPDI banking charter allows Kraken to operate an independent bank that will reduce reliance on third-party financial institutions and enables the exchange to provide custodial, custodial and trustee services for digital assets.