Regulatory Clampdown — Alaska and Florida Order Binance US to Cease Operations
A recent report indicates that regulatory authorities in Alaska and Florida have prohibited Binance US from operating within their jurisdictions. This development comes in the wake of Binance, along with its previous CEO Changpeng Zhao, reaching a plea agreement with the U.S. government.
Alaska and Florida Issue Cease Operations Orders to Binance US
Binance US, a subsidiary of Binance – the world’s leading crypto exchange by trading volume, has been ordered to cease operations in Alaska and Florida, according to state regulatory mandates. The news was initially revealed by Wall Street Journal (WSJ) journalist Caitlin Ostroff, highlighting the American exchange’s previous complications in these states.
Reportedly, the Office of Financial Regulation in Florida had enacted an emergency suspension of Binance US’s license for money transmission. The report further highlights that this month, the Alaska Division of Banking and Securities reportedly refused to renew the license of Binance’s U.S.-based crypto exchange.
A Binance US spokeswoman told Ostroff that the exchange was in “active dialogue with state officials.” The recent developments in Florida and Alaska come after the plea agreement that former CEO Changpeng Zhao (CZ) and Binance entered into with the U.S. government.
CZ is scheduled for sentencing on Feb. 23, 2024, with a potential 18-month prison term. Furthermore, on Jan. 23, 2024, a judge denied CZ’s request to travel to the UAE, even though he proposed to secure his travel with equity.
Regarding the situations in Alaska and Florida, the Binance US spokeswoman chose not to provide any comments on the possibility of the U.S. exchange appealing the prohibitions, as reported by Ostroff. Based on the data gathered on Jan. 28, 2024, Binance US ranks as the 41st largest crypto exchange by volume, having processed trades amounting to $9 million over the last 24 hours.
What do you think about Florida and Alaska banning Binance US? Share your thoughts and opinions about this subject in the comments section below.