The post Binance US to Cease Operations in Washington by August 2024 appeared first on Coinpedia Fintech News
Amidst regulatory hurdles in many regions, Binance US has announced the cessation of its operations in Washington. This comes amidst increased regulatory scrutiny of the exchange.
A deadline of August 20, 2024, has been set for closing all accounts based in the state. The motive behind the dismissal of operations in the state is the expired operating license.
The exchange is also unavailable to customers in several other states and regions including Alaska, American Samoa, Hawaii, Maine, New York, Oregon, Texas, Vermont, Guam, the Northern Mariana Islands, and the U.S. Virgin Islands.
Binance Faces Multiple License Revocations!
Just earlier this month, the financial market regulator of North Dakota revoked the money transmitter license granted to the exchange. This was the seventh state to take such an action after Alaska, Florida, Maine, North Carolina, and Oregon. The order issued by the North Dakota regulator stressed that Binance US did not continue to meet the qualifications or satisfy the requirements that apply to an applicant for a new money transmission license.
The revocation of licenses in multiple states explains the regulatory hurdles the exchange is currently facing. Furthermore, the involvement of Changpeng Zhao, the co-founder and former CEO of Binance, who indirectly owns the Binance US exchange and has been pictured exercising control over the entity is adding to it. Zhao remains a majority Binance.com shareholder despite his imprisonment.
Recent Lawsuits Against Binance
The US SEC had filed a lawsuit against Binance in June 2023 alleging Binance’s failure to register as an exchange, broker, and clearing agency, lacking controls over manipulative trading, engaged in wash trading, and commingled funds with Binance.com. Despite Zhao’s imprisonment, he remains a significant shareholder and continues to influence the company.
In March 2024 as well, the SEC had accused the CEX of failing to provide adequate information regarding the custody of customer assets.
Just recently, Binance was also fined $2.25 million by India’s Financial Unit (FIU) for violating the country’s anti-money laundering regulations, as reported by Reuters.