Binance FORCED To Exit Two U.S. States• January 27, 2024 12:00 am • Comments
Due to ongoing pressure from financial regulators, Binance has been forced to suspend operations in two U.S. states.
Florida and Alaska became the latest localities to take action against the world’s largest centralized exchange. The bans come amid litigation from the Securities and Exchange Commission and the Department of Justice. Bitcoinist reports:
According to recent court filings, the Florida Office of Financial Regulation, responsible for administering and enforcing the provisions of the Florida Statutes, has taken action against Binance.US (referred to as “BAM Trading”).
Additionally, former Binance CEO Changpeng Zhao was also denied the option of returning home to the United Arab Emirates until his court date, despite making a secure offer to the U.S. government.
Zhao pledged his shares of Binance, valued at roughly $4.5 billion, as collateral to ensure his return to the U.S. to face the courts.
With both of these recent developments unfolding, it is hard to imagine that the U.S. government will treat Binance with leniency. Multiple outlets reported the current round of regulatory pressure against Binance:
Florida and Alaska ban Binance from serving their residents
— Whale | Dinobet.io (@WhaleChart) January 26, 2024
UPDATE: @BinanceUS faces a ban in Alaska and Florida as regulators cite founder Changpeng Zhao's guilty plea to anti-money laundering charges. More details…↓#Binance #CryptoNews #CZhttps://t.co/GnKPpHHlZh
— BSCN (@BSCNews) January 27, 2024
— My Crypto Lawyer (@mycryptolawyer) January 26, 2024
Florida and Alaska regulators bar https://t.co/xBxJUyV84J after ex-CEO Changpeng Zhao's guilty plea. Alaska denies license renewal, and Florida issues an emergency suspension order. https://t.co/xBxJUyV84J continues in some states post-agreements. #Binance #CryptoRegulation
— Block Legal (@_BlockLegal) January 26, 2024
Protos provided this response from Binance spokespeople:
A spokesperson for Binance US said that the firm was “in active dialogue with state officials.” However, she declined to comment on whether the crypto exchange would appeal the decisions by Alaska and Florida.
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