- States across the US vary in licensing requirements, which is why it has been such a lengthy process for Binance.US to set up shop
- Idaho regulators had to reinterpret some rules on money transmission to issue crypto exchange licenses
Binance.US, the US arm of headquarter-less crypto exchange Binance, moved a step closer this week to becoming available country-wide. Three years after the exchange’s founding, Idaho residents can now access it to buy, sell and trade cryptocurrencies.
To make that happen, though, the Idaho Department of Finance had to take a closer look at its money transmission laws, said Jennifer Biretz, program manager of money-service businesses for the Securities Bureau at the Idaho Department of Finance.
“Our [rules] are actually somewhat outdated and we’ve taken some positions to interpret modernization of what constitutes money transmission and the ins and outs of cryptocurrency,” she told Blockworks.
States across the US have different licensing requirements, which is why it has been such a lengthy process for Binance.US to set up shop.
Idaho specifically requires any crypto exchange that accepts fiat currencies in exchange for digital assets to obtain a money transmitter license. License applicants must provide two years of financial statements, prove a minimum net worth of at least $50,000 and issue a surety bond to the Idaho Department of Finance of at least $10,000, among other requirements.
“For money transmitters, we’re looking for the experience of the company,” Biretz said. “All money transmitters are actually holding property, usually for third parties or future remittances, and we want to know about their financial experience and how they intend to operate as far as their business is concerned.”
In May, Idaho legislatures passed the Digital Assets Act, which classifies crypto as personal property and identifies rules and rights around purchase and possession.
“[The Act] provides more basis for departments to have oversight and regulate those entities when it comes to ensuring that consumers are protected,” Biretz said.
Residents of Hawaii, New York, Texas and Vermont will have to wait to access Binance.US services, but a company spokesperson said this might not be the case for much longer.
“The timelines vary for each state, but we are engaged in active and productive discussions with state regulators,” the spokesperson said. “Our goal is to demonstrate our compliance-first mindset and secure the remaining licenses so we can provide our services in all 50 states by the end of the year.”
Binance.US is now available in 46 US states.
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