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Gate US stated that it has obtained licenses to operate in “several” US states along with a money services business license from the law enforcement agency that led to its domestic launch.

Gate.io, the US arm of the fourth-largest cryptocurrency exchange by trading volume, says it has secured operating licenses in “several states,” bringing it closer to launching services within the country.

Gate.io founder and president and its US entity, Dr. Lin Han, announced during a statement on December 19 that Gate US is currently registered as a cash services company with the Money Crimes Enforcement Network (FinCEN) – a money crime hideout and watchdog.

He added that the exchange “has obtained some money transfer licenses or the like, and is currently working to obtain additional licenses.”

Gate United States hasn’t disclosed which countries it has licensed from, but has stated that it is however only accepting users from the country at this point. The terms of use state that it will not be offered on the market to residents of New York, Hawaii and therefore the territory of Puerto Rico.

Cointelegraph contacted Gate.io for comment but did not like getting the snapshot in response.

The exchange is set to provide services to every retail and institutional user once it is opened to US customers.

It joins the likes of various higher exchanges by volume registered within the US such as Coinbase, Kraken, Binance United States, and Gemini. FTX.US, the US arm of FTX Corporation, left a void within the market when it was swept up in bankruptcy proceedings in early November.

Hahn stated that it proactively registered as a cash services company because it is “committed to restrictive compliance.”

In a December 20 blog post, parent company Gate.io predicted an “inevitable” imminent return of restrictive frameworks in 2023 citing the failure of the Terra system and the bankruptcy of crypto platforms Celsius, BlockFi, and FTX.

Earlier in December, US lawmakers introduced bills that would require exchanges to disclose proof of reserves to the Securities and Exchange Commission.

If the laws return to fruition, they could cause difficulties for Gate.io as Armanino, the commercial firm it worked with to prove the reserve certificate, quietly completed its cryptographic audit services on December 15th.