Binance US Now Operates In 46 Out Of 50 States: Granted Operation License in Idaho

Binance.US is set to be globally available throughout the country as it secured another license for operation in Idaho yesterday.

Binance is a large cryptocurrency exchange platform that boasts of more than $70 billion in daily trading volume and 90 million registered users. Chinese-Canadian entrepreneur, Changpeng Zhao (CZ), founded Binance in 2017. It was initially headquartered in China before its government cracked down on exchanges and trading platforms, thereby banning them through regulation in September 2017, with 173 outlets closed down by July 2018. It moved its operations from China to Japan, but during a May 2020 tech conference, CZ said that the holding company doesn’t have a headquarter because “Bitcoin doesn’t have an office.” It is currently operating from the Cayman Islands.

Binance has its native token, BNB, the third-largest cryptocurrency by market cap, and is also run on its blockchain BSC after its initial launch on the Ethereum network.

The exchange had suffered many setbacks, especially in 2021, when the firm was investigated and probed by both the United States Department of Justice and the Internal Revenue Service (IRS) on allegations of money laundering and tax offenses in May. By June, The Financial Conduct Authority in the UK ordered Binance to cease all regulated activity.

Binance Acceptance in the US

The conditions for licensing are unique across the many states in the US. Binance US CEO Brian Shroder stated that one of the top goals of the firm is to be fully licensed and be able to offer regulated services to all 50 states and territories of the US.

Binance US has been licensed in four other states this year. The states are West Virginia, Puerto Rico, Connecticut, and Wyoming. Presently, their base of operation has expanded to 46 states and seven territories, where Hawaii, New York, Texas, and Vermont are yet to be functional.

Expansion to Idaho

Currently, the residents of Idaho can transact and trade cryptocurrencies. The Idaho State Department of Finance had to reevaluate specific rules concerning money transmissions before issuing the license.

According to Jennifer Biretz, a certified fraud examiner program manager of financial service businesses for the Securities Bureau at the Idaho Department of Finance, the rules governing the sector were a bit outdated, so they have decided to regard the modernization in money transmissions and the acceptance of cryptocurrencies in an interview with Blockworks.

Like Puerto Rico, Idaho requires that any crypto exchange that accepts fiat currencies in exchange for digital assets obtain a money transmitter license from the State Department of Finance (SDF). The prerequisite for license applicants includes providing financial statements demonstrating a minimum net worth of $50,000 with a steady net worth increment, depending on the number of Idaho locations, to a maximum of $250,000 and issuing a surety bond to the Idaho Department of Finance of at least $10,000 and other requirements.

For money transmitters, we’re looking for the experience of the company. All money transmitters are holding property, usually for third parties or future remittances, and we want to know about their financial experience and how they intend to operate as far as their business is concerned. Biretz said.

Biretz said.

Earlier in May, the legislative counsel in Idaho passed the Digital Assets Act, which recognizes crypto as personal property and puts rules for purchase and ownership rights. However, Biretz claims that the Act only provides more basis for better regulation and consumer protection from any crash or attacks.

Regarding the remaining states that haven’t accepted the firm yet, Binance’s spokesperson made clear that though the timeline for acceptance may vary from State to form, a lot of effort is put into ensuring that the licenses are secured by year-end while complying with the governing rules.

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