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.
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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, Dr. 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.”
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.