The regulatory space in the US has been characterized by a stringent environment that is a hard nut to crack for most Crypto exchanges. In this regard, most exchanges have been forced to steer clear of launching operations in the USA. This has consequently impacted the Crypto economy as the USA is arguably the largest Crypto market which a large and wealthy population that has the propensity to invest in the Digital Asset market.
Contrary to expectations, Binance has deployed USA trading desk that is set to greatly impact the Cryptocurrency community. Binance CEO Changpeng Zhao, while addressing the US market, is promising to offer complaint solutions to allow the trading endeavors to be on the good side of the law.
The US Market Is Underserved
Most Crypto trading platforms such as Bancor have been avoiding the US market as the regulatory environment is prohibitive and complex. The complexity is exacerbated by the fact that laws vary not only on state levels but also at the federal government level.
Hence, since the CEO of Binance is committed to compliance, a research partner at Zenith Ventures-a venture firm for Crypto and Blockchain- Dmitriy Berenzon believes that more Crypto trading platforms will enter the US market. For instance, Binance USA has registered as a money services business and consequently obtained a nod to operate from the U.S. Financial Crimes Enforcement Network (FinCEN).
Berenzon says that the US market generates 30% of Bitcoin trading volume a scenario that is depicted in Altcoin also. Hence, the underserved market will see more firms investing heavily in the market to offer trading platforms that are unique to the market.
The US Regulators Focus More On Investor Protection
According to analysts, regulators in the US such as the CFTC and SEC focus more on protecting investors and often end up sidelining Crypto trading platforms.
On the other hand, in the US, there is a lack of consensus as no one knows whether Cryptos are commodities, securities, or currencies. Therefore, rules from various bodies such as the Internal Revenue Services (IRS) are vague and Crypto trading platforms are left guessing on what compliance entails.
However, progress is being made and Crypto exchanges are urged to lobby policymakers and agencies to change the course of the regulation expedition.
Introducing Binance USA
Because of differences in state-level policies on Cryptos and Blockchain technology, the newly launched Binance USA is set to operate in all but 12 states in its debut. Some of the not supported states include New York, Florida, and Texas. However, due to the mobility of investors, some analysts believe that affected investors could make business trips to some states for Crypto transactions.
In the meantime, investors’ activity on Binance is still sluggish due to the ongoing oversold market conditions.