2019-6-14 01:06 |
Binance, one of the world’s leading cryptocurrency exchanges by trading volume, has been making wave after wave across the crypto industry in recent weeks. The Malta-based trading platform known for its exotic altcoin offering has saw its native crypto token soar, launched a DEX, debuted their Binance Launchpad platform for the much hyped IEO tokens, offered a taste of the margin trading to come, and much more.
In their latest news, that many say is “huge” for the Changpeng Zhao-led firm, and could help the company shed any lingering risk due to mounting regulatory concerns in the United States over cryptocurrency exchanges. The move would see the platform partnering with a FinCEN-registered company to roll out “Binance US,” exclusively for customers based in the United States.
Binance US “Significantly” Reduces Risk of US Regulator Intervention for Booming Crypto BrandIn a surprise move, Binance has announced a partnership with a mysterious company called BAM Trading Services to bring a version of its crypto exchange to US shores. Reports claim that BAM Trading Services would handle operations, while Binance supplies the wallet and technology – as well as the positive reputation its built in the crypto community.
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No firm timeline was given for the launch of the platform, but it will be fully compliant with US laws from the start, according to Binance CEO Changpeng Zhao. He also says the move “will bring the security, speed, and liquidity of Binance.com to North America.”
Users in the United States may find themselves confused by the news, as Binance is currently freely accessible by US residents. However, this has all along exposed the exchange to much risk due to regulators in the US starting to tighten up their grasp over the emerging market. Binance offers a variety of unique altcoins, some of which could very well be considered securities under US law – something that could eventually land the exchange in the hot seat. Even its own native BNB crypto token could be viewed as such until clearer guidelines are developed.
By opening up a US-based exchange, the risk of heavy-handed regulators overstepping their bounds is minimized. This version of the crypto trading platform can be sans assets that make lawmakers uncomfortable, and have tighter communication with important government branches focused on protecting investors, or preventing money laundering.
Wow this is *huge* news. Significantly reduces US regulatory risk for Binance in my opinion.
Disclosure: Multicoin owns BNB tokenshttps://t.co/zmLSXojTVG
— Tushar Jain (@TusharJain_) June 13, 2019
Multicoin Capital Managing Partner Tushar Jain agrees, saying that this “huge” news “substantially” lowers their risk.
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While details of the US-based platform haven’t been revealed, the crypto exchange will likely remain shrouded in mystery for a while longer, until CZ and Binance are ready to pull back the curtain on their latest venture. Given how well their most recent ventures have performed, Binance US will likely be yet another major win for the clear crypto market leader.
Featured image from Shutterstock
The post Binance De-Risks Amidst Regulatory Pressure, Plans for US Crypto Exchange appeared first on NewsBTC.
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