Binance US Announces Cessation Of Operations In Washington, Here’s Why

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As a long-term crypto investor, I’ve seen my fair share of regulatory challenges and market volatility. The latest development with Binance.US leaving Washington state is disheartening, to say the least. I’ve had accounts with them in the past, and their exit from the state is yet another reminder of the regulatory hurdles that exchanges face.

As a Binance.US user residing in Washington state, I’ve received disappointing news: the exchange will be shutting down for customers like me due to regulatory issues. The decision follows recent developments that have put Binance.US at odds with local authorities. Unfortunately, this means I’ll need to find an alternative platform by August 2024 when the exchange ceases operations in our state.

Binance.US Moves Out Of Washington

Binance.US has announced that it will be shutting down all user accounts based in the state by August 20, 2024. This decision stems from the expiration of the required operating license in the state. It’s important to note that this is not an isolated occurrence, as similar suspensions have taken place in Washington due to licensing issues.

In simple terms, the trading platform is presently unavailable for use by customers in various states and territories across the country. This list includes Alaska, American Samoa, Hawaii, Maine, New York, Oregon, Texas, Vermont, Guam, Northern Mariana Islands, and the U.S. Virgin Islands. The exchange’s challenges with adhering to regulatory requirements are a problem that affects the entire nation.

As a financial market analyst, I’d rephrase it this way: This past month, the North Dakota financial markets regulatory body rescinded the money transmitter authorization they had granted to Binance.US. With this decision, North Dakota became the latest among six other states – Alaska, Florida, Maine, North Carolina, and Oregon – to take similar actions. The order, issued on June 4, 2024, stated that Binance.US no longer met the prerequisites or complied with the requirements necessary for a new money transmitter license.

As an analyst, I would rephrase it as: “The cancellation of licenses in various states highlights the regulatory challenges that exchanges encounter. The North Dakota regulator justified this action by stating that it was essential and suitable for the welfare of the public to prevent unlawful behaviors, practices, or transactions.”

Changpeng Zhao’s Involvement

As an analyst, I’d rephrase it this way: I face the complex task of navigating regulatory hurdles, made more intricate by the role of Changpeng “CZ” Zhao in the situation. Zhao, who was once Binance’s co-founder and CEO, holds significant influence over Binance.US through indirect ownership. Despite his current incarceration, he continues to maintain a majority stake in Binance.com.

As a crypto investor closely following developments within the industry, I’ve noticed that Binance.US, the American branch of the popular cryptocurrency exchange Binance, has faced increased regulatory scrutiny due to its connection to the parent company. This heightened attention comes with valid concerns about the autonomy and governance of the U.S. entity. Additionally, in March 2024, I became aware that the United States Securities and Exchange Commission (SEC) leveled accusations against Binance.US for allegedly failing to provide sufficient information regarding the secure storage of customer assets.

In a recent submission to the District Court in Washington D.C., I, on behalf of the Securities and Exchange Commission (SEC), voiced my disappointment with Binance’s answers to our inquiries. The SEC specifically highlighted concerns about whether Binance employees based outside the United States could access customer assets stored by Binance.US via Amazon Web Services servers. Our investigation, initiated in June 2023, aims to determine if Binance.US has effectively maintained control over their customers’ assets.

Additionally, the SEC is particularly worried about the possibility of Binance Holdings Limited employees having access to these funds, increasing the risk for customer assets. In response, Binance.US maintains that they adhere to all necessary regulatory regulations.

Furthermore, the interaction highlighted that Binance.US has provided a complete set of documents and rejected allegations about the safety of customers’ funds being at risk. Binance.US asserts that they not only complied with but surpassed their legal responsibilities when responding to the SEC’s queries.

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2024-06-26 12:55