Binance to Resume Service in the U.S. Confirms CEO CZ

August 20, 2019 / by Crypto.IQ

In an interview with Cheddar, Binance CEO Changpeng Zhao said that he expects the company to resume its U.S. operations in the U.S. “in a month or two.” While the CEO refused to confirm a date, he promised the restoration of service in a couple of months, after the company has dealt with several regulatory and technical  challenges.

Binance had previously announced plans to restrict US users from trading on September 12th. This likely means that current US customers of Binance will see a break in service before it can produce its US-compliant division. 

The crypto exchange, formed just two years ago, is the largest in the world on the basis of volume. It had been working on opening up a US division pending the approval of the Financial Crimes Enforcement Network (FinCEN). Binance.US will launch its service by partnering with BAM Trading Services, a FinCEN compliant entity.

New York Out

According to Zhao, the company will not launch in New York as the BitLicense from New York State Department of Financial Services (NYDFS) is still pending for both Binance and BAM. Zhao wants to be fully compliant with all government regulations. He believes it is a great responsibility handling customer data and assets for a centralized service like his firm.

The NYDFS approach is rigorous when it comes to the crypto industry. It checks all the capital requirements and policies with respect to money laundering, capitalization, fraud, cybersecurity, and consumer protection. Many businesses have shut their firms to avoid going through the pain of these regulations.

Importance of the launch in the U.S.

The market is flooded with several cryptocurrency exchanges, with a handful of them based in the U.S. Coinbase Pro boasts a volume of $660 million, Kraken $355 million, Gemini $75 million and Poloniex $47 million, where the volume of Binance is $1.2 billion. Of $1.2 billion, 20% of the traffic comes from the U.S.

Zhao commented that the U.S. market is large enough for the newly formed cryptocurrency industry. With the opportunity to work in a large market, there comes a lot of regulations. The regulators have been extra cautious in this market.

“The U.S. historically has made very clear regulations, so we hope that will clear up…. At the same time, some early adopters in this space will be better rewarded. There are uncertainties in the regulatory space, but we’re willing to try,” added Zhao, who is confident of surviving in this regulatory environment.