A cryptocurrency derivatives exchange in Singapore is looking to expand its services into the United States after registering with FinCEN.
Bitget Looking to Venture into US Market
Bitget, a Singapore-based cryptocurrency derivative platform, revealed on Friday that it had registered with the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN). The company signed up as a money service business as it looks to provide its full-scale services in the United States.
The company, which was established two years ago, specializes in providing cryptocurrency trading services to retail and institutional investors. While it started out providing spot markets services, it ventured into cryptocurrency derivatives last summer. Its cryptocurrency derivative service has been a massive hit, as Bitget now records up to $1 billion in trading volume per day, according to the company’s spokesperson.
The spokesperson added that Bitget registering as a money service business (MSB) is the first step towards the company operating a legitimate exchange anywhere in the United States. However, Bitget has to work towards obtaining a state license to carry out most of its operations.
According to their MSB registration forms, the company’s U.S. office is located in Denver, Colorado. Bitget is hugely popular in China, which makes up more than two-thirds of its market, recording over 800,000 clients in the country. However, they have mainly been quiet in the West. The spokesperson added that they are looking to change that narrative and explore the English-speaking countries. Hence, they have started providing their services in the English Language.
Bitget’s popularity in Asia doesn’t stop in China. The company also has offices in South Korea and Japan. Last month, Bitget received a license exemption from the Monetary Authority of Singapore (MAS), which allows it to operate as a virtual currency service provider. They will do so without further regulation until August this year.
Bitget is also working hard to become a fully-licensed financial entity in Singapore. However, its expansion wouldn’t stop in the U.S. and Asia. They are looking to enter other regions. According to the company, they have plans to apply for a permit to operate in the U.K. and other European Union countries. The goal is to become a global cryptocurrency derivative platform that provides services to millions of retail and institutional investors in all parts of the world. The move to operate within the U.S. is the first for the company, and it could make it easier to penetrate other regions.
The global cryptocurrency derivatives market is filled with some top companies. Chicago Mercantile Exchange (CME) and the Chicago Board Options Exchange (CBOE) were the first to enter the market in December 2017. However, since then, other companies have entered the market, including the likes of LedgerX and Bakkt.
The cryptocurrency has been evolving from just providing services to retail investors to opening a broader market to institutional investors. As such, it is fast becoming a mainstream financial sector. As more players enter into the derivate markets, the cryptocurrency space will continue to expand and gain more adoption.