Binance US Stops Washington has made an important announcement: It will discontinue its operations for consumers in Washington. This decision has been made following regulatory events that have brought the cryptocurrency exchange into conflict with the authorities in the local area. Additionally, the cryptocurrency community exchange will be out of business beginning in August 2024.
Binance.US Leaves Washington
Binance is a platform. According to the US, all accounts headquartered in the state must be closed by August 20, 2024. The state’s decision to terminate operations is related to the expiration of the operating license. Additionally, this is not an isolated case where Washington has suspended.
Customers in several additional states and areas are unable to use the exchange at this time. This group comprises the following states and territories: Alaska, American Samoa, Hawaii, Maine, New York, Oregon, Vermont, Guam, Northern Mariana Islands, Texas, and the United States Virgin Islands. The exchange’s inability to comply with regulations is a systemic problem.
Last month, North Dakota’s financial market regulator canceled the exchange’s money transmitter license. Along with Alaska, Florida, Maine, North Carolina, and Oregon, this state became the seventh to revoke its license. “Has not continued to meet the qualifications or satisfy the requirements that apply to an applicant for a new money transmission license,” the North Dakota regulator highlighted in their order from June 4, 2024.
The difficulties exchanges encounter with regulations are highlighted by the revocation of licenses in many states. To safeguard citizens and prevent illegal acts, practices, or transactions, the North Dakota regulator cited license revocation as a “necessary and appropriate measure in the public interest.”
Changpeng Zhao Contributes
Changpeng “CZ” Zhao, Binance’s co-founder and former CEO, is adding fuel to the fire of these regulatory problems. According to reports, Zhao is allegedly in charge of the Binance.US exchange, which he indirectly owns. Even though he is now a prisoner, Zhao is still the biggest shareholder in Binance.com. As a result, the U.S. entity’s independence and leadership have come under increased scrutiny due to his ties to Binance US Stops Washington. On top of that, the SEC claimed in March 2024 that the CEX had not given them enough information on where its customers’ assets were kept.
The SEC I voiced its displeasure with the crypto exchange’s replies to questions in an update presented jointly to a District Court in Washington Operations, D.C. The SEC I also worried about whether Binance US Stops Washington staff from outside. The US might access customer assets stored by Binance.US via Amazon Web Services servers. In June 2023, the SEC I looked into whether Binance.US had completely controlled client assets.
In addition, concerns about the security and safety of customer assets are raised. Because the SEC is primarily focused on the possibility that employees of Binance Holdings Limited may have access to these funds. Nevertheless, Bi ance.US refuted the SEC’s claims by stating that the company complies with all regulations.
The exchange further clarified what it had provided. Including a wide variety of papers, and denied any wrongdoing regarding the safety of its customers’ money. According to Bin nce.US, the cryptocurrency exchange has gone above and beyond. The law requires responding to the SEC’s queries.
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