license

Gate.io closer to launching US services after receiving local licenses

Gate US said it obtained licenses to operate in “several” U.S. states along with a money service business license from FinCEN leading up to its local launch.

Gate US, the United States arm of the fourth largest cryptocurrency exchange by trading volume, Gate.io says it has received operating licenses in “several” states, bringing it closer to launching services in the country.

Founder and president of Gate.io and its U.S. entity, Lin Han, announced in a Dec. 19 statement that Gate US is now registered as a money services business with the Financial Crimes Enforcement Network (FinCEN) — the country’s money laundering and financial crimes watchdog.

He added the exchange “obtained some money transmission licenses or similar to operate, and is currently working to obtain more.”

Gate US did not disclose what states it had obtained licenses from but said it is yet to accept users from the country at this stage. Its terms of use, however, states it will not be available to residents in New York, Hawaii and the territory of Puerto Rico.

Cointelegraph contacted Gate.io for comment but did not immediately receive a response.

The exchange is slated to provide services to both retail and institutional users when it opens for U.S. customers .

It joins the likes of other top exchanges by volume registered in the U.S. such as Coinbase, Kraken, Binance.US and Gemini. Another popular exchange FTX.US, the U.S. arm of FTX, left a void in the market after being swept up in bankruptcy proceedings in early November.

Han said that it had proactively registered as a money services business as it is “committed to regulatory compliance.”

In a Dec. 20 blog post, parent company Gate.io forecasted impending “inevitable” regulatory frameworks to come in 2023, citing the failure of the Terra ecosystem and bankruptcies of crypto platforms Celsius, BlockFi and FTX.

Earlier in December, a U.S. lawmaker introduced bills aiming to require exchanges to disclose proof of reserves to the Securities and Exchange Commission.

If the laws come to fruition, it could spell difficulties for Gate.io as Armanino, the accounting firm it worked with for its proof of reserve attestation, quietly ended its crypto auditing services on Dec. 15.

Blockchain.com gets regulatory nod from Singapore’s central bank

Blockchain.com becomes the second crypto exchange in two days to receive preliminary approval to provide crypto services within the growing crypto hub.

Crypto exchange Blockchain.com has become the latest crypto company to secure preliminary approval from Singapore’s central bank to provide Digital Payment Token services in the city-state.

Blockchain.com’s regulatory approval follows hot on the heels of Coinbase, which revealed it had received the same “in-principle” approval from the Monetary Authority of Singapore (MAS) on Oct. 11.

If officially approved, Blockchain.com would join the likes of companies already licensed for digital Payment Token services including crypto exchanges DBS Vickers and Independent Reserve, digital payment solution provider FOMO Pay, and crypto-friendly payments application Revolut, among others.

Blockchain.com CEO and co-founder Peter Smith commended the country’s regulators for creating a “transparent regulatory process” to foster innovation, stating:

“Blockchain.com commends the Monetary Authority of Singapore on its transparent regulatory process that prioritizes crypto industry oversight while allowing innovation to thrive.”

It is not the first company to make a positive reference to the straightforward regulatory environment in Singapore for crypto companies.

Recently, digital asset platform Anchorage Digital co-founder and president Diogo Mónica pointed to Singapore’s strong regulatory environment and the emergence of a crypto hub as its motivation to choose the city-state as a “jump point” into the Asian markets.

Mónica also highlighted, in contrast, the lack of regulatory clarity in the United States as a major issue, suggesting that even if a company understands what rules govern an asset, it can be difficult to determine which of the 15 regulators they need to engage with.

In August 2021, crypto exchange Independent Reserve was one of the first of 170 global competitors to receive preliminary approval for the DPT license.

CEO Adrian Przelozny also made a positive reference to the transparency of Singapore’s regulatory environment, noting at the time:

“A well-regulated environment will benefit both investors and crypto industry stakeholders. With tailormade rules for the crypto industry, Singapore currently has the clearest and most detailed licencing requirements of any jurisdiction in Asia”

Przelozny suggested the license grants “will continue to put Singapore in pole position as the leading financial hub in Asia.”