After securing local permits, Gate.io is closer to offering services in the U.S.
Before its local debut, Gate U.S. claimed it had secured licenses to do business in "many" U.S. states and a money service company license from FinCEN.
The upcoming launch
Gate U.S., the American division of Gate.io, the fourth-largest cryptocurrency exchange by trading volume, claims it has obtained operating licenses in "many" states, putting it one step closer to beginning operations in the U.S. (1) It has been registered with the Financial Crimes Enforcement Network (FinCEN), the nation's money laundering and financial crimes watchdog, according to a December 19 statement from Dr. Lin Han, founder, and president of Gate.io and its U.S. subsidiary.
Additionally, he stated that the exchange "obtained various money transfer permits or comparable to operate and is trying to get more right now." Gate U.S. stated it is still waiting to accept customers from the nation but did not specify which states it has licenses from. However, according to its conditions (2) of use, citizens of New York, Hawaii, and Puerto Rico's territory will not be allowed access.
What's to be expected next
Gate.io was approached for comment, but they did not respond immediately. When it opens to U.S. clients, the exchange plans to offer services to both institutional and retail users. It joins the likes of other significant U.S.-based exchanges, including Coinbase, Kraken, Binance US, and Gemini. Another well-known exchange is FTX. The U.S., the American division of FTX, created a hole in the market following its early November involvement in bankruptcy proceedings. Han said that because the company is "dedicated to regulatory compliance," it has proactively registered as a money services firm.
Parent firm Gate.io predicted coming "inevitable" regulatory frameworks to arrive in 2023 in a blog post (3) on December 20. It cited the collapse of the Terra ecosystem and the bankruptcy of cryptocurrency platforms Celsius, BlockFi, and FTX. A U.S. legislator presented legislation earlier in December to require exchanges to provide the Securities and Exchange Commission with verification of reserves. Gate.io may have issues if the rules are implemented since Armanino, the accounting company it partnered with for its proof of reserve attestation, quietly discontinued its crypto auditing services on December 15.