Binance crypto exchange wind downs its operations in Florida and Alaska

On Jan 28, 2024

Binance’s American subsidiary suspended its services for those crypto traders who belong to Alaska and Florida.

Binance is a global crypto trade platform and BinanceUS is an American subsidiary of Binance. In mid-2023, BinanceUS & Binance exchange were sued by the United States Securities and Exchange Commission (SEC) for providing crypto services without regulatory approval and after that other regulatory bodies also sued this exchange. Binance already settled the case with all US enforcement agencies for violating laws, except the SEC body.

On 27 Jan 2024, BinanceUS terminated its crypto services for two US States Florida & Alaska-based crypto traders.

This decision was taken by the exchange following the legal action by the state regulators to prohibit the citizens’ interaction with the exchange.

Binance US got a money services licence from Florida in 2020 which would expire in April 2024. And Alaska’s banking division has refused to renew Binance US’s licence for undisclosed reasons. It will be interesting to know whether such problems are limited to a few crypto companies or only Binance is facing such heat.

Some media reports noted that Binance’s best American leaders left the crypto exchange because of the lawsuit against the exchange and in this situation the exchange failed to get better leadership to fight against the regulatory action & maintain a better level of cooperation with the local authorities.

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BinanceUS faces regulatory hurdles in Florida and Alaska, resulting in a suspension of operations.

The Florida Office of Financial Regulation used emergency powers to suspend BinanceUS. In Alaska, the banking division rejected license renewal for reasons undisclosed.#Binance… pic.twitter.com/TsAuFUAkyM
— WhiteWaveCTS (@WhiteWaveCTS) January 27, 2024

Binance co-founder Changpeng Zhao (CZ) & hurdles

As we know CZ also faced several criminal charges in the US for violating US laws via unauthorised Binance crypto exchange services.

According to reports, he may face jail punishment for up to 2 years with an additional fine. As a part of the settlement he already stepped down from the Binance CEO role.

Just a few days ago we reported that CZ’s representative lawyers asked the US court to allow him to visit UAE on behalf of $4.5 billion Binance stakes as a security so that he can meet with his family.