China-based cryptocurrency exchange 796.com has announced that it is launching its U.S. subsidiary in February 2015.
The strategy of establishing as US subsidiary is to be the main entity for local operations and global partnerships as well as to secure US-based license adoption, according to the company.
Nelson Yu, President of 796’s Americas operation, commented:
It has been a while since we first started the initiative to expand globally. We had the first idea back in mid 2014. Since then, we had done a lot of ground works out of New York, exploring opportunities with individuals and other Bitcoin businesses. It has come to the right timing to legitimize our partnerships via a US-based company.
With the establishment of our US Company, we will be applying for related cryptocurrency derivatives licenses and business permits in the area to make our operation as legit as possible. All these activities are already planned out in the first half of 2015.
US regulators are currently the most proactive in setting up rules for cryptocurrencies. It is however still work in progress. The New York Department of Financial Services (NYDFS) is developing the Bitlicense, which has received the most media exposure. The Financial Crimes Enforcement Network (FinCEN) and US Commodity Futures Trading Commission (CFTC) are also actively formulating licensing to bring cryptocurrencies under their umbrella.
It’s true that a lot of bitcoin companies are operating in the grey area, evading regulatory risks from any jurisdiction. When we set our foot in the US, we do not do this out of fear. We see opportunities and reasonable business guidelines for us to provide bitcoin futures to the local market. We will be working with our lawyers and any authorities to ensure all requirements are met for our business to operate.
796 claims to be the world’s biggest exchange for bitcoin and litecoin futures, which it has been offering since June 2013. It says its business is expanding rapidly and profitably without external fund backing.