Binance US is banned from offering its services to residents of Florida and Alaska. What’s going with the regulator about a Binance US ban?
The financial regulator has refused to renew the exchange’s license in Alaska, while in Florida, an emergency suspension order from the regulator has put an end to Binance US’s activities. The decision in both states appears to be based on admissions of guilt by Binance’s former CEO for violations of banking laws in the USA.
Binance in the USA still in turmoil
The regulatory pressure against the world first crypto exchange in the USA is far from over. Indeed, exchange Binance is now banned from offering its crypto services to residents of the states of Florida and Alaska. This decision has been taken by the financial regulators of these two states according to the Wall Street Journal.
In Florida, the Florida’s Office of Financial Regulation which issued an emergency suspension order against the license of Binance. On the other side, Alaska Division of Banking and Securities simply refused to renew Binance’s license in January 2024.
The decision by Florida and Alaska regulators is linked to recent admissions by CZ the former CEO of Binance. Last November, Changpeng Zhao pleaded guilty to charges of banking law violations and money laundering against Binance. Thanks to an agreement with the U.S. Department of Justice, Binance has been forced to pay a colossal $4 billion fine.
For its part, CZ was also forced to resign from the management of Binance. For the time being, he is maintained in the United States, awaiting sentencing in February 2024. He faces up to 18 months in prison.
World leader exchange still operating in other US states
Although Binance has been banned in Florida and Alaska due to its legal troubles, the exchange is still operating in other states. In particular, some US states have signed agreements with the exchange following the confession of its former CEO. These include South Dakota, Arkansas and Illinois.
In these three states, regulators have authorized Binance to continue offering its services to residents. In return, the Binance exchange must ensure that the former CEO, CZ, no longer has voting rights in the company’s operations.
Conclusion about the Binance US ban
The regulatory setbacks encountered by Binance in Florida and Alaska seem unjustified. At a time when the company has already approved the payment of a colossal fine, the dismissal of its former CEO who is awaiting sentencing, and compliance with US laws, the license renewal refusals are ill-timed.
Should US regulators get their act together? Does the Binance US ban represent an opportunity for the development of competitors such as Coinbase?
I dream of a world where every citizen has total control over themselves, including their finances. I believe that Bitcoin is one of the tools that will achieve this revolution. Since 2019, I am learning about this cryptocurrency and spreading the word around.
