- The time required to get a license is a huge drawback of this approach.
- State governments may impose their own regulations on the services.
Binance US, Binance’s American subsidiary, recently announced that it has been granted a Nevada Money Transmitter License. Binance US now has licenses in a total of seven states. This license has been issued to the firm in the jurisdictions of West Virginia, Connecticut, Wyoming, Rhode Island, Idaho, and Puerto Rico.
The Financial Institutions Division of the Nevada Department of Business and Industry issued Binance US with this license. Every company offering money transfer services must first get a money transmitter license. There is a money transmitter license available in the United States for each of the 50 states and 4 territories. State governments may impose their own regulations on the services due to the license.
Tedious Process
A company may avoid obtaining a license if it forms a partnership with a bank or another business that already has one. In this way, businesses may avoid the expense and legal protection of a license without sacrificing either. Consequently, the expense of obtaining a money transmitter license in the USA is high. For a single license, a state may charge up to $2 million. The time required to get a license is another drawback of this approach.
Binance has been actively spreading its dominance throughout the globe while Binance US has been getting regulatory support in the United States. Binance has been operating legally in Dubai since it was granted a license by the Virtual Asset Regulatory Authority there.
Bahrain’s regulatory support has also been substantial as of late. The Bahrain branch of Binance has been granted a Category 4 license to operate as a virtual currency exchange. Relevant permits were also granted by France and Italy.
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