Binance.US gets the cold shoulder in Alaska and Florida
Troubled cryptocurrency exchange Binance.US continues to face pressure from regulators in the United States following the guilty plea of Binance's former CEO.
Regulators in Florida and Alaska told Binance.US that the crypto exchange could no longer serve its residents, The Wall Street Journal reported on January 25.
The Alaska Department of Banks and Securities has reportedly denied Binance.US license renewal through January 2024. Cointelegraph reached out to the agency for comment on the downfall but did not receive a response at the time of publication.
Florida's Office of Financial Regulation has also ordered an emergency suspension of Binance.US' money transmitter license. The ban reportedly comes a week after Binance founder and former CEO Changpeng Zhao, also known as CZ, pleaded guilty to violating US anti-money laundering policies on November 21, 2023.
In December, a US federal court accepted Zhao's guilty plea to one count of violating the Bank Secrecy Act. As part of the deal, Zhao stepped down as chairman of Binance.US and transferred his voting rights through a proxy agreement, removing his influence over corporate governance.
Despite the US government's crackdown on the international Binance exchange, the local business, Binance.US, continues to operate in the country. “We remain fully operational and committed to continuing to serve our customers with the same products and services we always have,” the U.S. exchange said on Nov. 28.
Related: Binance and SEC lawyers present arguments on crypto as a security: Report
In late December, regulators in Arkansas, Illinois, and South Dakota reportedly reached an agreement with Binance.US that would allow it to continue operating in those states. As part of that, Binance.US must make the transfer of Zhao's voting rights irreversible.
After Zhao pleaded guilty, he tried to pledge his $4.5 billion Binance.US stake as security so he could go home to the United Arab Emirates. According to court records, Judge Richard Jones denied their request in a private hearing on Dec. 29.
Zhao is scheduled to be sentenced on February 23, 2024 and faces up to 18 months in prison.
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