FinCEN License:
Before its local launch, Gate U.S. said it obtained permits to do business in “many” U.S. states and a money service company license from FinCEN.
Gate U.S., the American division of Gate.io, the fourth-largest cryptocurrency exchange by trading volume, claims it has obtained operating licenses in “many” states, putting it one step closer to beginning operations in the U.S.
Gate U.S. has been registered with the Financial Crimes Enforcement Network (FinCEN), the nation’s money laundering and financial crimes watchdog, according to a December 19 statement from Dr. Lin Han, founder and president of Gate.io and its U.S. subsidiary.
The exchange “obtained certain money transfer licenses or equivalent permissions to operate,” he continued.
Gate U.S. stated it is still waiting to accept users from the nation but did not specify which states it had licenses from. However, according to its conditions of use, citizens of New York, Hawaii, and Puerto Rico’s territory will not be allowed access.
Institutional And Retail Users:
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 Coinbase, Kraken, Binance US, and Gemini. Another well-known exchange is FTX. Unfortunately, after being caught up in bankruptcy proceedings in early November, the U.S., 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 company Gate.io predicted impending “inevitable” regulatory frameworks to arrive in 2023 in a blog post on December 20. It cited the collapse of the Terra ecosystem and the bankruptcy of cryptocurrency platforms Celsius, BlockFi, and FTX.
A U.S. legislator presented legislation earlier in December intending to require 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.
