Key Points:
- Binance.US in Washington will halt operations on August 20, 2024, due to regulatory issues.
- Eight states, including North Dakota and Oregon, have revoked Binance.US’s operating licenses.
- The SEC has sued Binance.US for failing to register properly and engaging in manipulative trading.
Binance.US in Washington State to Cease Operations
The decision comes in response to recent regulatory developments that have resulted in the exchange losing its license to operate within the state.
The Washington State Department of Financial Institutions is advising users with any questions or concerns. Binance.US in Washington’s suspension of support is now the eighth time the exchange faces tightening of regulations in the US, joining that have revoked, suspended others, or declined to renew the exchange’s license after former CEO Changpeng Zhao‘s guilty plea to violating Anti-Money Laundering laws.
Earlier this year, North Dakota’s financial market regulator revoked Binance.US‘s money transmitter license in June, and Oregon followed suit in May, prohibiting the exchange from handling fiat or crypto for Oregon consumers. Florida was the first to act, suspending the exchange’s license in November, immediately after Zhao’s plea. Alaska also declined to renew its license in January.
Additionally, Binance.US has halted the onboarding of new users in Connecticut, Georgia, Ohio, and Minnesota. The exchange does not have licenses to operate in New York, Texas, Vermont, and Hawaii.
SEC Sues Binance.US for Regulatory Violations
Binance.US operates separately from its global parent Binance.com and is managed by BAM Trading Services, established in 2019. Despite this separation, regulators have noted that Binance.US shares branding, logos, and software with Binance.com.
The U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Binance in June 2023. The suit alleges that Binance.US failed to register as an exchange, broker, and clearing agency, lacked 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.
