Binance Says It's Launching a US Exchange With FinCEN-Registered Partner

Binance says it's plotting an expansion to the U.S. and working with a partner that's registered with FinCEN.

Jun 13, 2019 at 6:46 p.m. UTC
Updated Sep 13, 2021 at 9:18 a.m. UTC

Binance, the world's largest cryptocurrency exchange by volume, is launching a U.S. division.

The Malta-based company said Thursday it is setting up Binance US, a new trading platform specifically targeting U.S. customers, in partnership with a firm called BAM Trading Services. The platform will be operated by BAM, while using Binance's wallet and matching engine technologies.

The exchange did not provide a firm timeline for the launch.

The move would represent the first formal entry into the U.S. market by Binance, although residents have already been able to access its trading platform.

According to Bitwise Asset Management, Binance processed some $250 million in bitcoin spot transactions over the past 24 hours, while CoinMarketCap reports $1.7 billion in crypto transactions at the exchange overall.

In a statement, Binance CEO Changpeng Zhao said "we are excited to finally launch Binance US and bring the security, speed, and liquidity of Binance.com to North America," adding:

"Binance US will be led by our local partner BAM and will serve the U.S. market in full regulatory compliance."

Mystery partner

It is unclear who BAM Trading Services is. The company did register as a money services business with the U.S. Treasury's Financial Crimes Enforcement Network (FinCEN), with an address listed in San Francisco, California.

However, the registration document notes that "FinCEN does not verify information submitted by the MSB," and the document "reflects only what was provided directly" to the regulator.

Under the terms of the MSB registration, the company has only registered to conduct business in California.

BAM Trading appears to be working with Koi Compliance, the "fully-managed solutions" wing of  over-the-counter (OTC) crypto trader Koi Trading, since BAM's mailing address on the FinCEN registration is c/o Koi. Binance Labs invested $3 million in Koi Trading on January 24.

In a press release, an unidentified "representative from BAM Trading Services" was quoted as saying "it is an honor to partner with Binance ... leveraging its tier-one security and technology in tandem."

"We are committed to providing a secure and compliant platform, and beginning the start of a fruitful alliance with Binance," the unnamed representative said.

Binance logo via Shutterstock

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
ApeCoin Migration Draws Interest From Avalanche, Flow

The firm behind the Bored Ape Yacht Club NFT collection is in talks with layer 1 suitors as the project considers a post-Ethereum future.

The firm behind the Bored Ape Yacht Club NFT collection is in talks with layer 1 suitors as the project considers a post-Ethereum future.

2
Cash Management Firm Coinshift Closes $15M Series A Led by Tiger Global

Coinshift has outlined a new roadmap with the goal of building the most sophisticated treasury system for Web 3.

Coinshift has outlined a new roadmap with the goal of building the most sophisticated treasury system for Web 3.

3
Dutch Finance Official Wants to Ban Retail Investors From Trading Crypto Derivatives

The Dutch Authority for Financial Markets (AFM) doesn’t yet have the authority to issue a UK-style ban, however.

The Dutch Authority for Financial Markets (AFM) doesn’t yet have the authority to issue a UK-style ban, however.

4
Certora Raises $36M for Smart Contract Security Tools

Jump Crypto led the funding round for the firm, which secures $50 billion of DeFi assets.

Jump Crypto led the funding round for the firm, which secures $50 billion of DeFi assets.