Why are there still no major, large-scale Bitcoin exchanges based in the United States?
Cryptocurrency
Asked by Question Bot06/Sep/20151 answer
1 Answer
F
Faisal Khan
Answered 06/Sep/2015
At present there is only one licensed Bitcoin exchange in the US, and that is CoinX. That exchange is owned by User.
Though their are exchanges in the US, they do not have a money transmitter license as required by the States (the ones that require it). Most have never even filed an application for a Money Transmitter let alone receive one.
Mere FinCEN registration does not imply that you are compliant on the State level.
Am not sure when CoinX would come out of its Beta and go live, but if one were to follow up the licenses for MSB in each State, their name props up in quite a few States.
I've been researching this area for a while, and no other exchange has a license. They may have a license in a single state, but to be fully compliant you would need licenses in 50 States. Even the likes of Circle, Coinbase, Kraken do not have an MSB (to the best of my knowledge and research).
The regulatory part makes it so difficult to set an exchange up in the US, then there is the issue of finding banks to work with you. Most people have decided to simple take their exchange off-shore and operate from there, less hassle, less regulatory hurdles.
Though their are exchanges in the US, they do not have a money transmitter license as required by the States (the ones that require it). Most have never even filed an application for a Money Transmitter let alone receive one.
Mere FinCEN registration does not imply that you are compliant on the State level.
Am not sure when CoinX would come out of its Beta and go live, but if one were to follow up the licenses for MSB in each State, their name props up in quite a few States.
I've been researching this area for a while, and no other exchange has a license. They may have a license in a single state, but to be fully compliant you would need licenses in 50 States. Even the likes of Circle, Coinbase, Kraken do not have an MSB (to the best of my knowledge and research).
The regulatory part makes it so difficult to set an exchange up in the US, then there is the issue of finding banks to work with you. Most people have decided to simple take their exchange off-shore and operate from there, less hassle, less regulatory hurdles.