Exchange looks to expand volume and widen reach in line with US regulations.
by Emma Smith for CNR
OKCoin has announced plans to offer its token-to-token trading platform across a significantly larger chunk the United States. After opening its virtual doors to Californians earlier in the year, as of September 12th it began trading in 20 states, ranging from Alaska to Wisconsin to Massachusetts (see map). With its efforts, OKCoin is aspiring to increase its volume by offering low fees in its pricing model to a wider range of geographical customers.
OKCoin International, originally launched as OKCoin in 2013, was relaunched in the ‘States less than six months ago, after struggling with regulatory changes that made it difficult to meet the needs of investors. As OKCoin states in its latest press release, its goal since has been to “work closely with regulators and research regulations in every state to ensure that we are complying with Federal and State convertible virtual currency rules,” as it looks to gain wider access to the US crypto customer base.
Given that OKCoin currently offers only five options for tradable cryptocurrencies, it could be hard to set itself apart from other U.S. competitors who provide larger pools of options. That said, its limited selection could be a key reason why OKCoin has been able to clear regulatory hurdles in the states it is now working with. According to a blog post announcing the expansion from its vice president of marketing Jim Nguyen, OKCoin has now begun the process of gaining the Money Transmittal Licenses to widen out its reach even further, and will open in new states as and when it is sure it complies with local and Federal rules.
Having taken on the daunting task of overcoming state and Federal licensing rules on trading across the patchwork jurisdictions of the US, and begun work to reach further, OKCoin now faces some problems back home. Even as it was announcing its U.S. expansion, the company’s founder and CEO, Star Xu, was being taken into custody by police in Shanghai. He was taken for questioning regarding fraud allegations and controversies surrounding his projects. Further investigation is currently underway.