CEX.IO Exchange Goes Legit in US, Secures MTL Licences

Crypto exchange CEX.IO is expanding its dedicated US offering with additional approvals in a bid to avoid uncertainty around its legality. For the US offshoot, the company has received Money Transmitter Licenses in nine states, including Iowa, Kansas, New Mexico, Oklahoma, South Dakota, West Virginia, Maryland, Alaska, and New Hampshire.

CEX.io had received a money service business (MSB) status with the Financial Crimes Enforcement Network (FinCEN) back in 2015, which allows a company to act as a money transmitter in the United States with the stringent independent annual audit. However, the service was restricted to residents in states where MTLs are not required. Excluded therefore were 28 US states and territories, which are now available for CEX.IO to serve their residents, with plans to expand to all 50 states.

Being designated a money transmitter under FinCEN rules means CEX.IO is now obliged to follow federal AML and Know Your Customer (KYC) Know Your Customer (KYC) Know Your Customer (KYC) is the process via which the broker is verifying the true identity of its clients in order to comply with multiple regulations. KYC is used to assess the suitability of customers when it comes to anti-money laundering regulations, any type of financial fraud and determining whether they are potentially risky for the brokerage.In particular, KYC guidelines in financial services mandate that individuals make a cohesive effort to verify the identity, suitability, and risks Know Your Customer (KYC) is the process via which the broker is verifying the true identity of its clients in order to comply with multiple regulations. KYC is used to assess the suitability of customers when it comes to anti-money laundering regulations, any type of financial fraud and determining whether they are potentially risky for the brokerage.In particular, KYC guidelines in financial services mandate that individuals make a cohesive effort to verify the identity, suitability, and risks Read this Term) regulations.

Crypto exchanges are going legit

The news follows similar moves by other cryptocurrency venues such as Huobi and Bittrex which launched a purely crypto trading service for the US. It also comes on the heels of Binance’s decision to launch a dedicated platform in the US through a partner entity dubbed BAM Trading Services, a FinCEN-registered company. But Binance goes a step further, setting aside American users from trading on Binance.com.

Founded in 2013, CEX.io classifies itself as a self-regulated venue and is licensed as a Money Services Business (MSB) since the only regulation relevant to such businesses in the UK is a European Union law – the fifth Anti-Money Laundering Directive. When it started out, CEX.io wasn’t an exchange but a cloud mining platform.

Oleksandr Lutskevych, CEO and Founder of CEX.IO, commented: "The USA has always been a strategically significant market for our company and the industry in general. This country has always been on the front line of developing Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term industry infrastructure, and the maturity of the crypto regulation serves as one of the best indicators of that. We believe that the launch of our dedicated CEX.IO US presence will allow a more thorough investigation of the local customers' needs, facilitate the obtaining of MTL licenses in new states, and make our platform more geared for US crypto users."