Binance Backed FTX To Launch A Spot Crypto Exchange For The US Market In May
Crypto derivatives exchange which mainly serves the Asian market, FTX, is set to roll out a spot exchange to serve the US market, the Block reports.
Sam Bankman-Fried, FTX CEO, explained that currently, the US exchange is in beta testing and is expected to officially launch early next month.
— FTX US (@ftx_us) April 17, 2020
As per the FTX.US website, the newly established exchange has so far obtained a licence with the Financial Crimes Enforcement Network (FinCEN) to operate as a money services business (MSB). The firm is currently working to obtain a money transmitter license (MTL) in various states across the country.
It's important to note that financial services companies must acquire MSB and MTLs to operate in the US. Additionally, FTX will have to obtain Bitlicense to operate in New York.
The firm will operate with two separate order books: one for the FTX US and the other one for the main FTX derivatives exchange.
According to Bankman-Fried, the firm seeks to add extra assets, as well as onramp options prior to the official launch. The firm is also set to add margin trading features for only qualified users.
FTX was started in May 2019 and has picked traction since then and currently boasts a volume of about $728 million per 24 hours of trading, its website states. Since it was started, FTX has primarily focused on the Asian market and the majority of its team works from Hong Kong.
FTX has attracted reputable investors from within the crypto industry. In February this year, the firm launched an exercise to raise about $15 million having valued the firm at $1 billion and an equity token was kicked off the same month.
Binance crypto exchange, the largest exchange firm in the world, invested in FTX but the investment amount remains anonymous.