Binance Secures Money Transmitter License From Nevada Department Of Business
One of the world’s largest crypto firms, Binance, is aggressively making its presence felt across several nations. Before now, the crypto company has launched its operations in Europe. This event followed its launch in Italy and France. Furthermore, the blockchain service provider established its roots in Spain after obtaining another operating license from the Bank of Spain.
The company announced this on July 8 this year, citing that Moon Tech Spain, S.L. has been registered as a VASP (Virtual Asset Service Provider). Moon Tech Spain, S.L. is the Spanish subsidiary of the crypto exchange, Binance.
According to the crypto platform, the registration gave them the leverage to carry out all necessary digital currency transactions in the country.
More Reports On Binance Services Launch
Recently, Binance US announced the successful launching of its services in Nevada. Binance US is the U.S. arm of the digital currency exchange, Binance.
This arm of the digital currency exchange mainly supports U.S. crypto traders. Meanwhile, the crypto platform is making a relentless effort to spread its tentacles across the world.
In July, Dubai’s Virtual Asset Regulatory Authority granted the exchange platform a Virtual Asset License.
Also, recently, the digital currency service provider achieved another regulatory license from Bahrain. According to the company’s report, a category 4 license to function as a digital currency service provider in Bahrain was granted to Binance Bahrain.
Importance Of Nevada License
The U.S. arm of the crypto exchange has announced that it has obtained the Money Transmitter License in Nevada. Binance US is operational in seven different states, including Rhode Island, Connecticut, Idaho, Puerto Rico, West Virginia, etc.
Every money transmitting service business needs a Money Transmitter License to function in compliance with U.S. government policies. Obtaining such a license is vital as the government uses it to perform regulatory rights of the services. To operate in 50 different states of the U.S., there’s a need to obtain 50 additional licenses from all states.
This is particularly true as all the states in the U.S. have their specific license. The same applies to the four territories of the country.
However, there’s a way to carry out money transmitting services in the U.S. without obtaining such a license. For this to happen, the business will partner with a financial institution, such as a bank. The reason is that the financial institution already holds the required license.
A partnership with a financial institution helps to avoid the cost of obtaining this license. This is the reason for the high cost of securing such a license. According to U.S. standards, an individual will need about $2 million to obtain a Money Transmitter License successfully.Source