From the outside looking in, the United States seems to present a host of amazing financial opportunities. However, when it comes to launching cryptocurrency exchanges or altcoin trading platforms, these possibilities start to dwindle and fade quite rapidly.
In this regard, over the past few years, the U.S. regulatory landscape has seemed so hostile toward the crypto industry that a number of prominent exchange operators have preferred not to serve U.S. citizens at all — a case in point being Bancor, a decentralized liquidity network, that recently decided to block American citizens from using its website to convert its tokens.
Related: US a Crypto Exchange Scarecrow — What Needs to Change?
All of these negative developments have their roots traced back to America’s lack of clear regulations — especially when it comes to securities legislation. However, despite all these hurdles, Binance recently announced the launch of its U.S. trading desk, a decision that has been welcomed by many from within the global crypto community. Speaking on his company’s recent launch, CEO Changpeng Zhao (better known as CZ) was quoted as saying:
“The U.S. has always been a very important market; globally it’s one of the biggest markets for any business, including in cryptocurrency. We want to be fully compliant.”
With Binance finally making its long-awaited plunge into the U.S. market, the question that now begs an answer is: “Will other established ventures will now follow?” On the subject, Cointelegraph reached out to Dmitriy Berenzon, research partner at Zenith Ventures, a multistrategy venture fund for blockchain and cryptocurrency.
Berenzon believes that Binance’s entry into the market will open new doors for other similar firms for the simple reason that the U.S. market is too large for any crypto exchange to ignore. Berenzon pointed out that almost 30% of the world’s spot Bitcoin volume takes place on U.S.-based exchanges, so it’s more of a question of which exchanges have the resources to meet the country’s regulatory requirements than anything else. He further added:
“Exchanges and crypto firms have left the U.S. primarily due to the lack of regulatory clarity. While regulators are taking it slow with consumer protection in mind, they are continuing to lay the groundwork with clearer rules and expectations. I think it’s a question of “when” rather than “if” around regulatory clarity for this new asset class, and it’s important for firms and exchanges to continue proactively engaging with regulators to expedite the process.”
Lastly, the launch of Binance US is currently restricted to only 12 states (including New York, Texas and Florida) and it seems that it may take some time for the company to expand its operations geographically. However, just the initial launch in itself should provide other exchanges with the impetus needed to enter or re-enter the U.S. crypto market.
Also read: BitPay Undergoes Security and Confidentiality Certification Audit