Binance.US Faces Restrictions in Florida and Alaska
The troubled cryptocurrency exchange Binance.US is facing regulatory pressure in the United States as regulators in Florida and Alaska have informed the exchange that it can no longer serve residents of their states. The Alaska Division of Banking and Securities denied the renewal of Binance.US’s license, while Florida’s Office of Financial Regulation issued an emergency suspension order against the exchange’s money transmitter license. These actions come after Binance’s founder and former CEO, Changpeng Zhao, pleaded guilty to violating U.S. anti-money laundering policies. Regulators argue that Zhao’s guilty plea makes him unfit to control Binance.US.
Binance.US Continues Operations Amid Scrutiny
Despite the regulatory challenges, Binance.US has stated that it will continue to operate and serve its customers with the same products and services. While facing legal challenges and a lawsuit filed by the Securities and Exchange Commission, the exchange has reached agreements with regulators in Arkansas, Illinois, and South Dakota. However, Zhao, who stepped down as Binance.US chair, has been denied permission to travel to the United Arab Emirates and must remain in the United States until his sentencing date in February 2024. Binance.US also faces a lawsuit investigating whether it had backdoor control over user assets.
Hot Take: Binance.US Faces Further Regulatory Setbacks
Binance.US’s troubles continue as regulators in Florida and Alaska restrict its operations within their states. These actions come after the guilty plea of Binance’s founder, raising concerns about his control over the exchange. Despite these challenges, Binance.US remains operational and has reached agreements with regulators in other states. However, legal challenges persist as a lawsuit investigates allegations of backdoor control over user assets. With the sentencing date approaching for Zhao, uncertainty looms over the future of Binance.US. The outcome of these regulatory setbacks and legal battles will undoubtedly have a significant impact on the exchange and its customers.
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