Operations at Binance.US in Washington will cease on August 20, 2024, as a result of regulatory complications.
The exchange’s license to operate within the state has been revoked as a consequence of recent regulatory developments.
The Washington State Department of Financial Institutions is providing guidance to users who have any queries or concerns. The suspension of support by Binance.US in Washington marks the eighth occasion on which the exchange has been subjected to tighter regulations in the United States. This development follows the revocation, suspension, or refusal to renew the exchange’s license by other entities in response to former CEO Changpeng Zhao’s guilty plea to violating Anti-Money Laundering laws.
The financial market regulator in North Dakota revoked Binance earlier this year. In June, the United States issued a money transmitter license, and Oregon followed suit in May. This action prohibited the exchange from managing fiat or crypto for Oregon consumers. Florida was the first to respond, terminating the exchange’s license in November, immediately following Zhao’s confession. In January, Alaska also declined to renew its license.
In an additional move, Binance.US has suspended the enrollment of new users in Ohio, Minnesota, Georgia, and Connecticut. The exchange lacks the necessary licenses to conduct business in Vermont, Hawaii, Texas, and New York.
Established in 2019, BAM Trading Services manages Binance.US, which operates independently from its global progenitor, Binance.com. Regulators have observed that Binance.US and Binance.com share branding, logos, and software, despite the separation.
In June 2023, the Securities and Exchange Commission (SEC) initiated litigation against Binance. The lawsuit claims that Binance.US failed to register as a clearing agency, broker, and exchange, engaged in wash trading, lacked controls over manipulative trading, and commingled funds with Binance.com. Despite Zhao’s imprisonment, he continues to exert a substantial influence on the company and remains a significant shareholder.
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