Binance US, the American arm of the world’s largest cryptocurrency exchange by trading volume, is not currently operational in the state of Texas. The reason for this is two-fold.

First and foremost, the company has not yet obtained a Money Transmitter License (MTL) from the state of Texas. Secondly, even if Binance US were to obtain a MTL, it would still be barred from operating in the state due to a clause in Texas’s MTL regulations that specifically prohibits cryptocurrency exchanges.

The first reason why Binance US is not currently operational in Texas is because the company has not yet obtained a Money Transmitter License (MTL) from the state. In order to obtain a MTL, a company must first prove that it is financially solvent and has adequate security measures in place to protect customer funds.

Binance US has not yet met these requirements, so it cannot currently operate in Texas.

The second reason why Binance US would be barred from operating in Texas even if it did obtain a MTL is because of a clause in Texas’s MTL regulations that specifically prohibits cryptocurrency exchanges. This clause was added in order to protect investors from fraud and theft, as there have been numerous cases of crypto exchanges being hacked and user funds being stolen.

By prohibiting crypto exchanges from operating in the state, Texas protects its citizens from potentially losing their hard-earned money to criminals.

While Binance US may eventually be able to obtain a MTL and begin operating in Texas, for now, the state’s lAWS prohibit it from doing so. This is likely due to the high risk of fraud and theft associated with cryptocurrency exchanges.

Until these risks are mitigated, it is unlikely that Binance US will be allowed to operate in Texas.