Binance US has officially received approvals to operate as a money transmitter in Puerto Rico. The licence will allow the crypto exchange to receive and transfer funds between users trading crypto on its platform. Brian Shroder has reportedly called Puerto Rico an important market for the growth and adoption of cryptocurrencies. The region is a Caribbean Island under unincorporated US territory and housed close to three million inhabitants in 2021. As per several reports last year, the island is becoming a hub for wealthy ‘crypto colonisers’.
Binance CEO Chengpeng Zhao had launched Binance US in order to help the crypto community thriving in the US. In recent times, Binance US has scored operational licences in three other American states — Wyoming, Connecticut, and West Virginia.
Zhao, who envisions to bag operational licences everywhere’ shared the development on Twitter with the caption — “More licences.”
“As America’s home to buy, trade, and earn digital assets, our goal is to offer the most compliant and customer-centric exchange in all 50 states and territories. Puerto Rico, in particular, is an important market for the growth of crypto,” Shroder said in an official statement.
No tax on capital gains and tax breaks for those who spend at least 183 days on the island are among reasons why ‘cryptopreneurs’ are eyeing Puerto Rico as a safe haven.
NFT investor and YouTuber Logan Paul and crypto billionaire Brock Pierce are among industry biggies who have marked their presence in Puerto Rico in recent times. Redwood City Ventures, a Bitcoin and blockchain investment firm, has also opened an office in the American territory, CNBC had reported earlier this year.
On April 6, Binance US completed its first-ever external funding. After raising over $200 million (roughly Rs. 1,525 crore) from various investors like Circle Ventures, it reached the valuation of $4.5 billion (roughly Rs. 34,322 crore).
The US is presently in the process of researching around cryptocurrencies and national digital currencies so that a proper framework to regulate these assets can be put in place.
Earlier this year, US President Joe Biden signed executive orders on the government oversight of the cryptocurrency industry.
Crypto holding and trading is not banned in the US. The nation identifies crypto as a property, and not currency. US’ Internal Revenue Service (IRS) imposes a tax reportedly between 10 to 20 percent on crypto transactions in the USA.
Meanwhile, Binance is pacing towards bagging operational approvals in other parts of the world as well. Abu Dhabi, Dubai, and Bahrain are some regions where the exchange has officially been permitted to operate.
Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.
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