According to reports, the United States partner firm of the Binance cryptocurrency exchange, Binance.U.S recently acquired about $200 million in seed financing. In a Wednesday announcement, the company wholesomely attained a $4.5 billion pre-capital valuation. Furthermore, the US Binance intends to increase its staff for the purpose of its technology department and product.
According to the Chief Executive Officer of Binance.U.S, Per Shroder, the firm already possessed about 100 staff in its tech and product department. He, however, assures the readiness of the firm to multiply the staff before the end of the year via the ongoing fundraising programme. As things stand, the investors involved in the project entail VanEck, Circle Ventures, RRE Ventures, Foundation Capital, Original Capital, Gaingels, and Gold House.
How Binance.U.S came to limelight
Founded in 2019, Binance.U.S manifested as a different legal section from the renowned crypto exchange, Binance.com. Nevertheless, the firm still acquires its technology using an existing license procurement of its official partner.
Binance.U.S since its introduction grossly encountered series of regulatory scrutiny. In U.K and Italy for instance, regulators restricted the operations of Binance in their respective countries. In Hong Kong and Japan, authorities warned investors against dabbling in the exchange. Furthermore, Binance came under massive investigation by the U.S government for allegations of tax fraud and money laundering last year. The investigation, however, became extended to Binance.U.S, a US official partner of the crypto exchange. Now, the Securities and Exchange Commission remains resilient in scrutinizing the relationships between Binance.US and the two firms. According to reports, the two firms under investigation with Binance.US belong to Changpeng Zhao, the founder of Binance.
However, the crypto exchange, Binance September 2019, reportedly suspended US-based client’s owing to regulatory restraints. Afterward, the company through collaboration with BAM trading services launched the establishment of Binance. U.S.
Accordingly, the users in the approved states became enforced to successfully do rigid Know Your Customer (KYC) regulations. The completion of these protocols consequently allowed them to gain access to Binance.U.S more than Binance initially required. This, however, entails the uploading of valid identification and social security numbers.
Now, Binance.US already enlarged its activities to about 45 states as well as 8 regions since 2019. Recently, the firm extended its services to Connecticut and Louisiana. According to Per Shroder, Binance.US intends to enhance a corporate development section. More so, the Chief Executive Officer maintained that the firm is working to assess all potential mergers and acquisitions opportunities to aid its services.