Gate.io is registered with FinCEN to launch services in the US
On December 19, Gate US, the United States division of Gate.io, the fourth-largest cryptocurrency exchange by trading volume, announced that it has been granted operating licences in "several" states, putting it one step closer to launching services in the nation.
Gate US has been registered as a money services business with the Financial Crimes Enforcement Network (FinCEN), the nation's money laundering and financial crimes watchdog, according to a statement from Lin Han, the founder and president of Gate.io and its U.S. organization.
The exchange obtained certain money transfer licences or equivalent permissions to operate, he continued.
According to a Gate.io representative, the exchange has acquired licenses from the states of Arizona, Georgia, and Mississippi, as well as written certifications from other jurisdictions stating that Gate US does not need a license.
When it opens to U.S. clients, the exchange plans to offer services to both institutional and retail users.
It joins the likes of other significant U.S.-based exchanges, including Gemini, Kraken, Coinbase, and Binance.US. Another well-known exchange is FTX. After being caught up in bankruptcy proceedings in early November, US, the American division of FTX, left a hole in the market.
Han claimed that because the company is dedicated to “regulatory compliance," it has proactively registered as a money services business.
Parent firm Gate.io predicted impending "inevitable" regulatory frameworks to arrive in 2023 in a blog post published on December 20. The company cited the collapse of the Terra ecosystem and the failures of cryptocurrency platforms Celsius, BlockFi, and FTX as justifications.
A U.S. lawmaker presented bills earlier in December with the intention of requiring exchanges to provide the Securities and Exchange Commission with verification of reserves. Gate.io may encounter issues if the rules are implemented because Armanino, the accounting company it partnered with for its proof of reserve attestation, quietly discontinued its crypto auditing services on December 15.
CBW - External Analyst