Amidst a wave of regulatory hurdles in many regions, Binance US has announced the cessation of its operations in Washington. This decision comes amid increased scrutiny from regulatory bodies.

A deadline of August 20, 2024, has been set for closing all accounts based in the state. The primary reason for halting operations is the expiration of the exchange’s operating license.

Binance US 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.

North Dakota License Revocation

Earlier this month, the financial market regulator of North Dakota revoked Binance US’s money transmitter license. North Dakota became the seventh state to take such action, following Alaska, Florida, Maine, North Carolina, and Oregon. The North Dakota regulator emphasized that Binance US no longer met the qualifications or requirements for a new money transmission license.

The revocation of licenses in multiple states highlights the significant regulatory challenges Binance US is facing. Additionally, the involvement of Changpeng Zhao, the co-founder and former CEO of Binance, complicates matters.

Despite his imprisonment, Zhao remains a majority shareholder in Binance.com and is seen exercising control over Binance US.

Legal Challenges

In June 2023, the US SEC filed a lawsuit against Binance, alleging the exchange’s failure to register as an exchange, broker, and clearing agency, as well as lacking controls over manipulative trading, engaging in wash trading, and commingling funds with Binance.com. The SEC also accused the company in March 2024 of failing to provide adequate information regarding the custody of customer assets.

Recently, Binance was fined $2.25 million by India’s Financial Intelligence Unit (FIU) for violating the country’s anti-money laundering regulations, according to Reuters.

Also Read: Binance Secures VASP License in Dubai

Do you think Binance US can overcome these challenges and regain trust?

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