Gate US aforesaid it obtained licenses to work in “several”
Gate US aforesaid it obtained licenses to work in “several” U.S. states at the side of a money service business license from law enforcement agency leading up to its local launch.
Gate US, the US arm of the fourth largest cryptocurrency exchange by trading volume, Gate.io says it’s received operational licenses in “several” states, transportation it nearer to launching services within the country.
Founder and president of Gate.io and its U.S. entity, Dr. Lin Han, declared during a Dec.19 statement that Gate United States is currently registered as a cash services business with the money Crimes Enforcement Network (FinCEN) — the country’s hiding and money crimes watchdog.
He added the exchange “obtained some money transmission licenses or just like operate, and is presently operating to get additional.”
Gate United States didn’t disclose what states it had obtained licenses from however aforesaid it’s nevertheless to just accept users from the country at this stage. Its terms of use states it’ll not be on the market to residents in New York, Hawaii and therefore the territory of Puerto RICO.
Cointelegraph contacted Gate.io for comment however didn’t like a shot receiving a response.
The exchange is slated to supply services to each retail and institutional user once it opens for U.S. customers.
It joins the likes of different high exchanges by volume registered within the U.S. like Coinbase, Kraken, Binance United States and Gemini. Another fashionable exchange FTX.US, the U.S. arm of FTX, left a void within the market when being swept wing up in bankruptcy proceedings in early Nov.
Han aforesaid that it had proactively registered as a cash services business because it is “committed to restrictive compliance.”
In a Dec. 20 blog post, parent company Gate.io forecasted imminent “inevitable” restrictive frameworks to return in 2023 citing the failure of the Terra system and bankruptcies of crypto platforms celsius, BlockFi and FTX.
Earlier in December U.S. lawmakers introduced bills going to need exchanges to disclose proof of reserves to the Securities and Exchange Commission.
If the laws come back to fruition, it may spell difficulties for Gate.io as Armanino, the business firm it worked with for its proof of reserve attestation, quietly completed its crypto auditing services on Dec. 15.