Binance.US, a popular cryptocurrency exchange, will be ceasing operations in Washington State on August 20, 2024, due to regulatory issues. This decision comes after the exchange lost its license to operate within the state. This is not the first time that Binance.US has faced regulatory scrutiny in the United States. Eight states, including North Dakota and Oregon, have either revoked or declined to renew Binance.US’s operating licenses. These regulatory challenges started after former CEO Changpeng Zhao pleaded guilty to violating Anti-Money Laundering laws.
In addition to Washington, North Dakota and Oregon have also taken action against Binance.US earlier this year. The financial market regulator in North Dakota revoked the exchange’s money transmitter license in June, while Oregon did the same in May. Florida was the first to suspend Binance.US’s license back in November, followed by Alaska declining to renew its license in January. The exchange has also halted onboarding new users in Connecticut, Georgia, Ohio, and Minnesota. Binance.US does not have licenses to operate in states like New York, Texas, Vermont, and Hawaii, further limiting its operations in the US.
It is important to note that Binance.US operates separately from its global parent, Binance.com, and is managed by BAM Trading Services. However, regulators have raised concerns about the similarities in branding, logos, and software between the two platforms. The US Securities and Exchange Commission (SEC) filed a lawsuit against Binance.US in June 2023, alleging various regulatory violations. These violations include failing to register as an exchange, broker, and clearing agency, lacking controls over manipulative trading, engaging in wash trading, and commingling funds with Binance.com. Despite Zhao’s imprisonment, he remains a significant shareholder and continues to influence the company.
As the regulatory challenges for Binance.US continue to mount in the US, the exchange’s operations are becoming increasingly limited. With the cease of operations in Washington State, Binance.US is facing increasing scrutiny from regulators in various states. This is a significant blow to the exchange, as the US is one of the largest cryptocurrency markets in the world. It remains to be seen how Binance.US will navigate these regulatory challenges and whether it will be able to continue operating in other states in the US.
In response to the regulatory issues facing Binance.US, the Washington State Department of Financial Institutions is advising users with any questions or concerns. It is important for users of the exchange to stay informed about the developments and to take appropriate actions to safeguard their assets. With regulatory actions being taken against the exchange in multiple states, users should consider alternative platforms to trade and store their cryptocurrencies. This is a developing situation that will likely have significant implications for the cryptocurrency industry as a whole.
Overall, the regulatory challenges faced by Binance.US in the US are a cause for concern for users and investors in the cryptocurrency space. The exchange’s decision to cease operations in Washington State is just one of several regulatory actions taken against it in recent months. With the SEC lawsuit and license revocations in multiple states, Binance.US is facing an uncertain future in the US market. It is crucial for users to stay informed and take appropriate steps to protect their assets and investments in the midst of these regulatory challenges. As the cryptocurrency industry continues to evolve, regulatory compliance will remain a key issue for exchanges like Binance.US.
