The US arm of the crypto exchange Binance, Binance US, has announced that it has received the Money Transmitter License in Nevada. Nevada becomes the seventh state to grant the license to Binance US.
West Virginia, Connecticut, Wyoming, Rhode Island, Idaho, and Puerto Rico have all granted this license to the company.
This license was granted to Binance US by the Financial Institutions Division of the Nevada Department of Business.
Why This Is A Key License
Money Transmitter Licenses are required for every business that provides Money Transmitting Services. All 50 states and 4 territories have a separate money transmitter license in the United States. The license allows state governments to regulate the services at their level.
It is possible for certain companies to circumvent the need for a license by partnering with a bank or another holder of the license. Such a move provides the legal coverage of the license without bearing the cost of getting one. As such, the cost of procuring a money transmitter license is not cheap in the United States. States can charge up to $2 million for an individual license. The process to procure a license is also time taking.
Binance US procuring the license allows it to establish its foothold at the state levels in the US. The company revealed its happiness at the decision and also highlighted that they are currently operating in 46 states and Puerto Rico.
Binance Global Expansion
While Binance US has been gaining regulatory backing in the United States, Binance has been aggressively expanding its dominion in the world. Just last month, Binance received a Virtual Asset License from Dubai’s Virtual Asset Regulatory Authority.
They also recently received a lot of regulatory backing from Bahrain. Binance Bahrain received a Category 4 license as a crypto asset service provider. It also received key licenses from Italy and France.