Puerto Rico is the fourth jurisdiction to grant an MTL to Binance.US in 2022, following West Virginia, Connecticut, and Wyoming.
Money Transmitter Licenses authorize Binance to transmit currency, which makes them essential for the exchange’s operations. In a statement announcing the granting of the Puerto Rican MTL, Binance confirmed that “its licenses and those of its partners” now allow the exchange to operate in 45 states and seven territories.
Binance is now expected to focus on Texas, Hawaii, Idaho, New York and Vermont, the last states where it is not yet licensed.
Crypto Puerto Rico
In recent years, Puerto Rico earned a reputation as a crypto magnet. The island lures entrepreneurs and NFT artists with tax breaks and a relaxed lifestyle, plus a strong community whose impact is amplified by the Puerto Rico-based Blockchain Trade Association.
For Binance, Puerto Rico is “an important market for the growth of crypto,” according to Binance.US CEO Brian Shroder.
Given Puerto Rico’s crypto-friendly policies, the fact that it’s one of the last US jurisdictions to grant Binance an MTL might come as a surprise, but the process doesn’t necessarily reflect the state’s stance on crypto.
One of the last states where Binance is not yet present, Texas, is considered to be a Bitcoin mining stronghold, and Wyoming, which approved Binance just over a month ago, was the first to approve DAOs as legal entities.
The Puerto Rico MTL comes as Binance is working to demonstrate its newfound commitment to global compliance. In fact, the efforts are visible enough for Changpeng Zhao to limit his comment on the Puerto Rico MTL to “more licenses.”
In recent weeks, the company has won regulatory approval in Bahrain and the United Arab Emirates, cementing its presence in the Gulf region. At the Paris Blockchain Week Summit, CZ also announced they intended to boost their presence in France, strengthening Binance’s reach in Europe.
Most recently, Binance Custody announced they have passed security and privacy management audits to receive ISO 27001 and ISO 27701 certifications, which Binance said showed their “commitment to the ethos to uphold the highest standards of security, accountability and transparency.”
Binance’s licensing and certification spree signal the company’s determination to make good on their 2021 promise to get “licensed everywhere” and become a “trusted financial institution” that bridges the gap between TradFi and crypto.