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Crypto: Binance US in Great Difficulty in Several American States!

Wed 19 Jun 2024 ▪ 3 min of reading ▪ by Luc Jose A.
Getting informed Regulation Crypto

Binance US, one of the largest crypto exchanges in the world, is facing an unprecedented crisis as several U.S. states revoke or refuse to renew its money transmitter licenses. This series of decisions highlights the compliance challenges and legal complications faced by the company, as well as its former CEO Changpeng Zhao, and could have significant repercussions on the future of Binance US and the crypto industry as a whole.

Binance en grande difficulté aux USA

States Take Drastic Measures Against Binance US

Binance is apparently not out of its troubles yet! Several U.S. states, including North Dakota, Alaska, Florida, Maine, North Carolina, and Oregon, have revoked or refused to renew Binance US’s money transmitter licenses. According to North Dakota’s financial regulator, “BAM Trading Services, Inc. did not comply with North Dakota laws. Furthermore, Changpeng Zhao, the majority beneficial owner, pled guilty to felony charges for violating U.S. anti-money laundering laws.

Zhao is currently serving a four-month prison sentence after reaching a deal with the U.S. Department of Justice, admitting to a violation of the Bank Secrecy Act. Binance has also agreed to pay $4.3 billion in penalties and fines. These measures follow a series of license suspensions and revocations in several states due to various compliance issues.

What About the Future of the Exchange?

The repercussions of these decisions are vast, not only for Binance US but for the entire crypto industry in the United States. These actions could prompt other states to scrutinize Binance US’s operations more closely and potentially those of other companies in the ecosystem.

Furthermore, investors and users of Binance US may lose confidence in the platform, which could lead to a decrease in trading volumes and a migration to competing platforms. Additionally, these actions could influence regulators in other countries to intensify their oversight of Binance’s activities. Binance US would do well to quickly restore regulators’ and users’ confidence to ensure its survival and future growth in an increasingly regulated environment.

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Luc Jose A. avatar
Luc Jose A.

Graduated from Sciences Po Toulouse and holder of a blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I committed to raising awareness and informing the general public about this ever-evolving ecosystem. My goal is to enable everyone to better understand blockchain and seize the opportunities it offers. Every day, I strive to provide an objective analysis of the news, decipher market trends, relay the latest technological innovations, and put the economic and societal issues of this ongoing revolution into perspective.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.