In the aftermath of former Binance CEO Changpeng Zhao’s guilty plea, Binance.US, the American arm of the cryptocurrency exchange, is encountering significant regulatory challenges.
Regulators in Florida and Alaska have informed Binance.US that it is no longer authorized to serve residents in these states, according to a report by The Wall Street Journal published on January 25.
The Alaska Division of Banking and Securities took a firm stance by denying the renewal of Binance.US’s license in January 2024. Despite attempts to seek clarification from the regulatory agency, no response was received.
Florida’s Office of Financial Regulation escalated the situation further by issuing an emergency suspension order against Binance.US’s money transmitter license. This action came approximately a week after Changpeng Zhao, also known as CZ, pleaded guilty to violating U.S. anti-money-laundering policies on November 21, 2023.
In December, a U.S. federal court officially accepted Zhao’s guilty plea to one count of Bank Secrecy Act violations. Zhao relinquished his position as Binance.US chair in the settlement agreement, transferring his voting rights through a proxy agreement to eliminate his influence on the firm’s governance.
Despite the U.S. government’s actions against the global Binance exchange, Binance.US continued operations there, expressing commitment to serving customers with uninterrupted products and services.
Changpeng Zhao is scheduled to be sentenced on February 23, 2024, facing a potential prison term of up to 18 months. The ongoing developments raise questions about the future of Binance.US amid increasing regulatory scrutiny.
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