This week, Binance US, the US arm of the headquarter-less crypto exchange Binance, took a step closer to becoming available across the country. Idaho citizens can now buy, sell, and trade bitcoins three years after the exchange was founded.
However, the Idaho Department of Finance has to examine its money transmission regulations more closely in order to achieve this, according to Jennifer Biretz, program manager of money-service enterprises for the Idaho Department of Finance’s Securities Bureau.
- “Our [rules] are actually somewhat outdated and we’ve taken some positions to interpret modernization of what constitutes money transmission and the ins and outs of cryptocurrency,” she told Blockworks.
Various states have different licensing procedures, which is why setting up shop for Binance.US has taken so long.
A money transmitter license is required in Idaho for any crypto exchange that accepts fiat dollars in exchange for digital assets. Applicants must submit two years of financial statements, demonstrate a minimum net worth of $50,000, and post a $10,000 surety bond with the Idaho Department of Finance, among other criteria.
- “For money transmitters, we’re looking for the experience of the company,” Biretz said. “All money transmitters are actually holding property, usually for third parties or future remittances, and we want to know about their financial experience and how they intend to operate as far as their business is concerned.”
The Digital Assets Act, which recognizes cryptocurrency as personal property and establishes restrictions and rights around purchase and possession, was passed by Idaho lawmakers in May.
- “[The Act] provides more basis for departments to have oversight and regulate those entities when it comes to ensuring that consumers are protected,” Biretz said.
Residents of Hawaii, New York, Texas, and Vermont will have to wait for Binance.US services, although this may not be the case for much longer, according to a company representative.
- “The timelines vary for each state, but we are engaged in active and productive discussions with state regulators,” the spokesperson said. “Our goal is to demonstrate our compliance-first mindset and secure the remaining licenses so we can provide our services in all 50 states by the end of the year.”
