Cryptocurrency exchange OKCoin has announced the launch of USD trading services for its U.S. division, enabling investors to trade between the U.S. dollar and several major cryptocurrencies.
Key Features of OKCoin's USD Trading Services
- Supported Cryptocurrencies: Bitcoin (BTC), Bitcoin Cash (BCH), Litecoin (LTC), Ethereum (ETH), and Ethereum Classic (ETC).
- USD Deposits/Withdrawals: Users can now deposit and withdraw funds in USD.
- Geographical Restriction: Currently limited to investors based in California due to initial MSB (Money Services Business) registration constraints.
Background and Regulatory Compliance
OKCoin USA Inc., the legal entity behind the exchange, is headquartered in Mountain View, California. The company filed its MSB registration with the U.S. Financial Crimes Enforcement Network (FinCEN) in November 2017.
While the FinCEN registration allows OKCoin to operate as a money transmitter, the exchange notes that its fiat-to-crypto services are initially restricted to California residents.
Comparison with Competitors
Earlier this year, Huobi—another leading exchange formerly based in China—partnered with HBUS to offer crypto-to-crypto trading across all 50 U.S. states. However, Huobi’s CEO clarified that FinCEN registration does not resolve all regulatory challenges for operating in the U.S.
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FAQs
1. Can I use OKCoin’s USD services outside California?
Currently, only California residents can access USD trading due to regulatory limitations.
2. Which cryptocurrencies are supported for USD pairs?
BTC, BCH, LTC, ETH, and ETC are available for trading against USD.
3. How does OKCoin ensure compliance in the U.S.?
The exchange operates under an MSB registration with FinCEN and adheres to state-specific financial regulations.
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Conclusion
OKCoin’s expansion into USD trading marks a strategic move to cater to U.S. investors, albeit with initial geographical restrictions. As regulatory frameworks evolve, the exchange may broaden its services to additional states.