Gate US said it received licenses to operate in “several” US states, as well as a money services business license from FinCEN before launching locally.
Upcoming cryptocurrency exchange Gate US has announced that it has received operating licenses in “multiple” states, bringing it closer to launching services in the United States.
The exchange is a separate US entity owned by Lin Han, the founder and chairman of Gate.io, the fourth-largest cryptocurrency exchange by trading volume.
Han announced in a Dec. 19 statement that Gate US is now registered as a money services company with the Financial Crimes Enforcement Network (FinCEN) – the nation’s money laundering and financial crime regulator.
He added that the exchange “has obtained money transfer or similar licenses to operate and is currently working to obtain more.”
A Gate.io spokesperson confirmed to Cointelegraph that the exchange has received licenses in Arizona, Georgia, and Mississippi, as well as written confirmations from other states confirming that Gate US does not require a license.
Gate US has not yet accepted foreign users at this time. However, its terms of service state that it will not be available to residents of New York, Hawaii, and the territory of Puerto Rico.
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The exchange is expected to provide services to retail and institutional users when it opens to US customers.
It joins other leading exchanges registered by volume in the United States, such as Coinbase, Kraken, Binance.US and Gemini. Another popular exchange, FTX.US, the US arm of FTX, left a void in the market after becoming embroiled in bankruptcy proceedings in early November.
Related: How Central Exchanges Aim to Win Back Users After FTX’s Collapse
Han said he proactively registered as a money services business because of his “commitment to regulatory compliance.”
In a December 20 blog post, Gate.io predicted “inevitable” regulatory frameworks looming in 2023, citing the failure of the Terra ecosystem and the bankruptcies of crypto platforms Celsius, BlockFi, and FTX.
Update (Dec 21, 03:15 UTC): Added response from Gate.io spokesperson.
Update (Dec 27 05:35 UTC): Removed incorrect references to Gate.io being a parent company of Gate US.