On Friday, Binance US announced that it had received a Money Transmitter license from the U.S. state of Wyoming.
“Binance.US is pleased to announce that it has received its Money Transmitter License from the Wyoming Division of Banking.” the blog announcement read.
Cryptocurrency firms operating in the U.S. are considered money transmitters and are classified under the category of Money Services Businesses(MSB) just like banks. For a crypto firm to operate as a money transmitter, they must apply for a Money Transmitter License(MTL) from each state they intend to operate.
As opposed to regulations at the federal level which are designed to ensure financial security and avert money laundering, MTLs at the state level are meant to protect consumers by ensuring the safety, soundness, and solvency of the applicants.
This becomes the third MTL License to be issued to the firm in 2022 alone after it received licenses from the states of West Virginia and Connecticut in January. Binance U.S now operates in 40 out of 50 states in the U.S. including Alaska, Arkansas and Maryland through its licenses and those of its partners.
“We continue to prioritize compliance and operational excellence, be it through building out our team or working closely with regulators on licensing and other initiatives.” Brian Shroder Chief Executive Officer of Binance.US said following the issuance.
“Wyoming and its crypto-savvy population have emerged as champions of blockchain technology, and we are pleased to deepen our presence in the state with the support of the Wyoming Division of Banking.” He added.
In 2019, Binance was shown the door in the U.S. on regulatory grounds before coming back in partnership with a U.S. Branch called Binance U.S., which it said was a separate exchange. Last year, Binance was caught in crosshairs with various regulators for carrying out business in their jurisdictions without authorization. This led to the crypto exchange receiving several bans and warnings from countries such as South Africa, the United Kingdom and Singapore.
With talk of crypto regulation weighing heavy on crypto firms, especially on Binance which has often held divergent views on regulation, the firm has been taking well-calculated steps to ensure it’s on the right side of the law while noting not to compromise its pledge to users. Binance’s C.E.O Changpeng Zhao ‘CZ’ has for instance been mounting charm offensives to try and woo regulators in issuing the exchange with operating licences across the globe.