Banxa Establishes USA Office, Submits 8 License Applications in World’s Largest Crypto Market

Rhea-AI Summary

Banxa Holdings has officially opened its USA office in Nevada and appointed Richard Mico as USA CEO. The company submitted 8 Money Transmitter License (MTL) applications, with an additional 34 planned for August. The first licenses are expected to be granted as early as October 2022. This strategic move aims to solidify Banxa's position in the lucrative US crypto market, allowing the company to operate as a regulated Money Services Business (MSB) and offer a broader range of services to customers. This initiative is key to enhancing operational efficiency and expanding revenue streams.

Positive

• Establishment of a USA office in Nevada enhances market presence.
• Submission of 8 MTL applications facilitates regulatory compliance and reduces reliance on intermediaries.
• Ability to offer a wider array of services to US customers.
• Local credit card acquiring expected to increase conversion rates and revenue.

Negative

• None.

Key Headlines

• USA office opened in Nevada and USA CEO appointed
• 8 Money Transmitter Licenses lodged, 34 more scheduled for August lodgment
• First licenses expected to be granted as soon as October 2022

TORONTO, ON and MELBOURNE, AUSTRALIA / ACCESSWIRE / July 27, 2022 / BANXA Holdings Inc. (TSX-V:BNXA) (OTCQX:BNXAF) (FSE:AC00) ("Banxa" or "The Company"), the leading global web3 on/off ramp solution, announces its physical entry into the USA and submission of its first Money Transmitter License (MTL) applications to solidify its position in the world's largest and most lucrative crypto market⁽¹⁾.

Banxa has opened its USA operating headquarters in Reno, Nevada, which will be led by Banxa's Chief Legal Officer and newly appointed USA CEO Richard Mico. Richard has begun to build out a core team in Reno whose top priority is obtaining local USA Money Transmitter Licenses (MTLs). These licenses will allow Banxa to operate compliantly as a regulated Money Services Business (MSB).

The primary drivers for entering the USA and obtaining MTLs and a Trust License include:

• Solidifying Banxa's position and establishing a physical footprint in the world's largest cryptocurrency market
• The ability to offer a broader range of services (e.g. coins and chains) to Banxa's US customer base that is currently not possible through intermediaries
• No longer being required to leverage regulated intermediaries which reduces costs and also mitigates risk of reliance upon third-parties
• The ability to have local credit card acquiring for higher conversions and increased revenue
• By holding the Nevada Retail Trust License (scheduled for 2023 submission), Banxa will also be able to offer cryptocurrency custody solutions

To date, 8 MTLs have formally been lodged between 22nd and 26th July. The Company anticipates lodging the remaining 34 applications in August. It is expected that the licenses will be received in tranches from as early as October 2022 through July 2023. Banxa is already registered as an MSB with the Financial Crimes Enforcement Network (FinCEN).

Holger Arians, Banxa's CEO says, "Obtaining our own licenses and establishing a foothold in both Banxa's most critical market and the largest crypto market in general, is an important part of our core strategy which is to offer our partners and their users the most ways to enter and exit the digital asset space. Being firmly cemented in the USA is a huge achievement and critical to Banxa's mission of dominating this space."

Banxa USA CEO and Chief Legal Officer Richard Mico says, "The US is one of our biggest markets and we have decided to establish our own presence to better service our existing partners and their end users. By establishing a physical presence in the US, we can acquire new partners and users in a more cost efficient way and with a broader service offering. Being in charge of our own destiny when it comes to holding our own licenses is a core focus of Banxa's strategy."

1. Source: https://blog.chainalysis.com/reports/cryptocurrency-gains-by-country-2021/

BANXA Holdings Inc. (TSX-V:BNXA) (OTCQX:BNXAF) (FSE:AC00)

Banxa's mission is to accelerate the world to Web3 with its leading global on/off ramp solutions. Through its extensive network of local payment solutions paired with the required crypto licenses, Banxa gives its partners and projects access to global audiences with less friction and higher conversions. Banxa has a global team of Web3 natives - with operating headquarters in the USA, Europe and APAC regions. For further information go towww.banxa.com

CONTACTS:

Investors:
MZ North America
Brian M. Prenoveau, CFA
BNXA@mzgroup.us
561-489-5315

Media:
Wachsman
banxa@wachsman.com

ENDS
ON BEHALF OF THE BOARD OF DIRECTORS
Per: "DOMENIC CAROSA" https://twitter.com/dcarosa
Domenic Carosa, Chairman (1-888-218-6863)

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release

Forward-Looking Information and Statements

This press release contains certain "forward-looking information" within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company's beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company's control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as "could", "intend", "expect", "believe", "will", "projected", "estimated", or variations of such words.

By identifying such information and statements in this manner, the Company is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such information and statements. In addition, in connection with the forward-looking information and forward-looking statements contained in this press release, the Company has made certain assumptions. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information and statements are the following: the ability of the Company to work effectively with strategic investors; and changes in general economic, business and political conditions, including changes in the financial markets, changes in applicable laws, and compliance with extensive government regulation. Should one or more of these risks, uncertainties or other factors materialize, or should assumptions underlying the forward-looking information or statements prove incorrect, actual results may vary materially from those described herein.

Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward- looking information and statements attributable to the Company or persons acting on its behalf is expressly qualified in its entirety by this notice.

SOURCE: Banxa Holdings

View source version on accesswire.com:
https://www.accesswire.com/709952/Banxa-Establishes-USA-Office-Submits-8-License-Applications-in-Worlds-Largest-Crypto-Market

FAQ

What is the significance of Banxa's USA office opening?

The opening of Banxa's USA office establishes a physical presence in the largest cryptocurrency market, enhancing regulatory compliance and operational capabilities.

How many Money Transmitter Licenses has Banxa submitted?

Banxa has submitted 8 Money Transmitter License applications and plans to lodge 34 more in August.

When does Banxa expect to receive the MTLs?

Banxa expects to receive the licenses in tranches starting from October 2022 through July 2023.

Why is Banxa focused on obtaining MTLs in the USA?

MTLs will enable Banxa to operate as a regulated Money Services Business, allowing broader service offerings and reducing costs related to third-party intermediaries.

Who has been appointed as the USA CEO of Banxa?

Richard Mico has been appointed as the USA CEO and will lead the operations in Nevada.