OrangeX's Compliance-First Strategy Powers $20M Leap

OrangeX, a global cryptocurrency exchange, has secured $20 million in a Series B funding round led by Kryptos, with additional support from SCI Ventures and other major investors, the company announced on August 28, 2025. This marks a significant milestone in the exchange’s growth trajectory, following a $10 million Series A round in September 2023. The funding will be used to further global expansion efforts, while also reinforcing the company’s commitment to regulatory compliance and operational transparency.

A key focus of OrangeX’s strategic development is its compliance framework. The exchange has obtained several regulatory licenses, including a Virtual Asset Service Provider (VASP) license in the Czech Republic and a Money Services Business (MSB) registration in the United States. These credentials are crucial for operating in highly regulated markets and enhancing trust among global users. The company has also implemented a publicly verifiable proof of reserves system, ensuring that all user assets are fully backed and transparently auditable [1].

The regulatory landscape for centralized cryptocurrency exchanges is complex and varies significantly across jurisdictions. Web3 founders and legal teams must evaluate compliance requirements in each market they intend to enter. Eight jurisdictions—particularly the United States, Switzerland, the UAE, Malta, Gibraltar, the Cayman Islands, the Bahamas, and the Seychelles—are highlighted as favorable for crypto exchanges due to their structured legal frameworks and clear regulatory expectations. These jurisdictions provide a foundation for establishing trust with users, enabling access to fiat currency-based payment systems, and ensuring compliance with Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations [2].

In the U.S., for example, exchanges must navigate a patchwork of federal and state-level regulations. Many centralized exchanges are classified as money transmitters, requiring federal Money Service Business (MSB) licenses and state-specific money transmitter licenses. In contrast, jurisdictions like Malta and Gibraltar offer more streamlined regulatory environments with dedicated authorities overseeing virtual asset operations. Exchanges such as CEX.io and Valereum have secured multiple licenses in these regions, allowing them to operate across international markets with a consistent legal structure [2].

Offshore jurisdictions such as the Cayman Islands, the Bahamas, and the Seychelles also provide viable options for exchanges seeking to establish a legal foundation while minimizing regulatory friction. The Cayman Islands, for instance, has a well-defined legal framework for virtual asset service providers, while the Bahamas has developed an exhaustive regulatory environment under the management of the Securities Commission. Though the Seychelles currently lacks a specific regulatory regime for exchanges, it is expected to implement one in the near future [2].

As OrangeX continues its expansion, the firm is well-positioned to leverage these global regulatory pathways to scale its operations while maintaining compliance. With its latest funding round and robust compliance infrastructure, the exchange aims to strengthen its presence in key markets and enhance its platform offerings for international users.

Source:

[1] ChainCatcher (https://www.chaincatcher.com/en/article/2201771)

[2] Legal Nodes (https://legalnodes.com/article/centralized-exchange-legal-compliance)