Binance.US to cease operations in Washington State
Binance.US to cease operations in Washington State
Binance.US, one of the leading cryptocurrency exchanges, is set to cease operations for clients in Washington state by August 20, 2024. This decision follows heightened regulatory scrutiny and the expiration of its operating license in the state.
The move is not isolated, as Binance.US is currently unavailable in several other states including New York, Texas, and Florida, due to similar regulatory hurdles, CoinGape reported.
The cessation in Washington is part of broader regulatory challenges faced by the exchange nationwide. Recently, on June 4, 2024, the financial market regulator of North Dakota revoked Binance.US's money transmitter license, citing the exchange’s failure to meet regulatory requirements. This marks the seventh state to take such action.
Adding to the complications is the involvement of Changpeng Zhao, co-founder and former CEO of Binance, who remains a significant shareholder of Binance.com. His indirect control over Binance.US has raised additional regulatory concerns about the exchange's governance and autonomy.
Also, in March 2024, the U.S. Securities and Exchange Commission (SEC) accused Binance.US of failing to provide adequate information regarding the custody of client assets, questioning whether employees of Binance Holdings Limited had access to them.
Binance.US has maintained its compliance with regulatory requirements, asserting that it has met and exceeded its obligations. The exchange emphasized its efforts to address the SEC’s inquiries and dismissed concerns about the security of client funds as unfounded.
The cessation of operations in Washington state underscores the complex regulatory environment facing cryptocurrency exchanges in the United States.
The broader implications of regulatory actions could shape the future landscape of cryptocurrency exchanges in the U.S., influencing how digital assets are managed and protected.
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