Launch of Binance US Can Have Far-Reaching Effects on Crypto Market

In this regard, over the past few years, the U.S. regulatory landscape has seemed so hostile toward the crypto industry that a number of prominent exchange operators have preferred not to serve U.S. citizens at all - a case in point being Bancor, a decentralized liquidity network, that recently decided to block American citizens from using its website to convert its tokens.

Despite all these hurdles, Binance recently announced the launch of its U.S. trading desk, a decision that has been welcomed by many from within the global crypto community.

With Binance finally making its long-awaited plunge into the U.S. market, the question that now begs an answer is: "Will other established ventures will now follow?" On the subject, Cointelegraph reached out to Dmitriy Berenzon, research partner at Zenith Ventures, a multistrategy venture fund for blockchain and cryptocurrency.

Berenzon believes that Binance's entry into the market will open new doors for other similar firms for the simple reason that the U.S. market is too large for any crypto exchange to ignore.

Lastly, the launch of Binance US is currently restricted to only 12 states and it seems that it may take some time for the company to expand its operations geographically.

Just the initial launch in itself should provide other exchanges with the impetus needed to enter or re-enter the U.S. crypto market.

Christophe de Courson, CEO of Olymp Capital, an asset management fund dedicated to blockchain and crypto, told Cointelegraph that even though a lot of exchanges have previously left with U.S. regulators - with many of them having to delist their digital offerings in the past - in the end, everyone realizes the immensity of what the U.S. has to offer, and thus they will all look to, in one way or another, re-enter the market in a compliant way.

Marc Bhargava, President of Tagomi - a digital asset prime brokerage, which is integrated with nine different crypto exchanges and several different over-the-counter desks in the U.S. and abroad - pointed out that large funds, index products, venture capitalists and family offices simply can't afford not to participate in U.S. markets, especially if they want to be viewed as global players.

In order for other exchanges and trading platforms to make their way back into the U.S. market, they will have to emulate Binance's way of doing things - which is basically registering as a money services business with the U.S. Financial Crimes Enforcement Network and comply with all of the state laws in which the proposed venture will be operational.

Looking ahead. While the U.S. government and various other agencies have been moving forward to implement necessary rules and regulations to govern the crypto industry, it is also important to note that many pertinent changes have been slow to come by.