Binance.US is currently experiencing closures in Washington as a result of lost licenses, which is a component of a more general trend in crypto regulation in the United States.
Binance American branch of the global cryptocurrency exchange will cease operations in Washington state on August 20, 2024, as a result of the loss of its operating license in the face of increased regulatory scrutiny.
Binance.US has encountered regulatory obstacles in the United States for the eighth time as a result of Washington’s ruling. Several states have revoked, suspended, or denied the renewal of the exchange’s licenses in response to the conviction of former CEO Changpeng Zhao for money laundering.
The money transmitter license of Binance.US was withdrawn in June by North Dakota, meaning that the exchange could no longer process fiat and cryptocurrency transactions for customers in North Dakota. In May, Oregon followed suit, citing the exchange’s lack of transparency and cooperation with authorities. Furthermore, Florida suspended Binance.US’s license in November, shortly following Zhao’s purported misconduct, and Alaska declined to renew its license in January.
Additionally, Binance.US has discontinued the enrollment of new users in Ohio, Minnesota, Connecticut, and Georgia. The exchange is unable to operate in New York, Texas, Vermont, and Hawaii as a result of comparable regulatory actions.
The Washington State Department of Financial Institutions encourages users to contact them with any queries or concerns. This suspension in Washington is consistent with a more general trend of regulatory restriction that Binance.US is currently experiencing in a variety of U.S. jurisdictions.
Binance.US operates independently from its global progenitor, Binance.com, but it shares software, branding, and logos with the parent company. In June 2023, the U.S. Securities and Exchange Commission (SEC) initiated litigation against Binance.US, alleging that the company had neglected to register as a clearinghouse, merchant, and exchange. The SEC also referenced a lack of safeguards over manipulative trading, participation in wash trading, and alleged money commingling with Binance.com.
Despite the ongoing disagreement regarding Zhao’s influence over the business, he remains a significant stakeholder. The regulatory obstacles encountered by Binance.The United States emphasizes the growing scrutiny of cryptocurrency exchanges in the country.
The ongoing discussion regarding the intersection of investor protection, regulatory compliance, and innovation in the crypto sector is underscored by the SEC’s lawsuit and the actions of individual states. It is uncertain whether the organization will be able to effectively confront these obstacles and regain its footing in the American market.
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