- CEX.IO obtains MTL license in 9 states in the US, aims to expand to all 50 states and territories.
- CEO of CEX.IO says dedicated US branch will help in understanding the local customers better.
Questions had been raised about the legitimacy and legality of CEX.IO, a popular crypto exchange. To get rid of these uncertainties, the company is expanding its US wing with additional approvals. So far, the company has received Money Transmitter License in nine states including Iowa, Kansas, New Mexico, Oklahoma, South Dakota, West Virginia, Maryland, Alaska, and New Hampshire.
The firm, which was licensed as a money service business (MSB) by FinCEN in 2015 allowed US-based users to make deposits and withdrawals. However, this service was only available in states which did not require MTLs. Thanks to the latest upgrade, CEX.IO is now available to the other 28 states and territories that previously had no access to it.
Being licensed as a money transmitter under FinCEN implies that CEX.IO is now compelled to follow federal AML and know-your-customer (KYC) regulations. Notably, a few more crypto venues such as Huobi, Binance and Bittrex have introduced a crypto trading platform for US users.
CEX.IO, when founded in 2013, was not a crypto exchange but a cloud mining platform. It now classifies itself as a self-regulated exchange and is licensed as a money service business (MSB). CEO and founder of CEX.IO, Oleksandr Lutskevych said:
“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 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.”
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