Binance is gearing up to launch a US-based division named Binance US. The leading crypto exchange announced this news yesterday via a press release. Allegedly, it has teamed up with a Financial Crimes Enforcement Network (FinCEN) approved firm.
Binance’s partner in this project is BAM Trading Services. The firm would run Binance US by using Binance’s wallet and similar engine products.
In the news release, Changpeng Zhao, the founder of Binance said,
We are excited to finally launch Binance US and bring the security, speed, and liquidity of Binance.com to North America. Binance US will be led by our local partner BAM and will serve the U.S. market in full regulatory compliance.
In the same publication, a representative of BAM Trading Services noted,
it is an honor to partner with Binance, leveraging its tier-one security and technology in tandem. We are committed to providing a secure and compliant platform, and beginning the start of a fruitful alliance with Binance.
Launching an exchange in the US would mark Binance’s first entry in the US crypto market.
Binance’s Mysterious Partner
According to a report, it is not clear who BAM Trading Service is. The firm registered as a money services business (MSB) with the US Treasury’s FinCEN. Its registration documents show that it is situated in San Francisco, California.
Nonetheless, the registration document claims that FinCEN does not verify information that the MSB submitted. It adds that the document only shows what the firm provided the agency directly. Regarding MSB registration, BAM has registered to operate in California only.
On top of this, BAM seems to be working with Koi Compliance, Koi Trading’s OTC branch. This is because BAM’s mailing address on the FinCEN registration document is c/o koi. If so, this will be Binance’s second affiliation with Koi Trading. Earlier this year, the leading crypto exchange invested $3 million in Koi Trading.
This news comes after Binance unveiled that it seeks to launch stablecoins backed by a variety of fiats. However, the exchange’s stablecoins would not be pegged to the US Dollar.
Explaining why Binance had excluded the US Dollar, Binance’s CFO, Wei Zhou noted,
from the users’ perspective, only certain portions of the world use the dollar. Other users use other currencies, and we feel it should be reflected in stablecoins as well.
Additionally, Binance DEX’s site notified its users that it would block users from 29 countries across the globe from accessing it. Among these countries is the US. The citizens of the blocked countries would also not be able to access the site’s wallet interface regardless of their actual locations.
Do you think Binance’s decision to launch a US-based division will help make crypto mainstream in the country? Let us know in the comments below.