The World’s top crypto exchange Binance.US continues to face regulatory pressures in the United States after the guilty plea of its former CEO, Changpeng Zhao, who is also known as CZ.
Here’s detailed Binance.US News
Regulators in Florida and Alaska have taken significant actions to stop Binance.US from providing services in their respective states. After the actions, Binance.US News went viral.
The Alaska Division of Banking and Securities has rejected the Binance.US license renewal application, casting a cloud of uncertainty on the company’s operations in the state. This development, which took place at the start of 2024, underscores the growing regulatory scrutiny faced by crypto platforms in the United States. At the time of publication, the agency had not put any official comment on the refusal.
Binance.US News: Florida’s Emergency suspension order
Financial Regulation of Florida has issued an emergency suspension order against Binance.US’s money transmitter license. This action comes from Zhao’s guilty plea to charges related to the Anti-Money Laundering policies of the US on November 21, 2023. Florida officials’s timing of this action hints at a swift response to the legal issues surrounding the Binance US.
In November 2023, Zhao pleaded guilty to one count of Bank Secrecy Act violations, an important development that shook the whole cryptocurrency community. As part of a settlement agreement, Zhao stepped down from his post as chair of Binance.US and relinquished his voting rights through a proxy agreement, effectively removing his influence over the company’s governance.
The actions were taken in quick response to the charges against him and in an attempt to mitigate the impact on the exchange’s operations.
Binance.US News: exchange continued its operation amidst regulatory challenges
Despite the government’s actions against the global Binance exchange, Binance.US continued its operations in the United States, ratifying its commitment to serving its customers with the same products and services. The tenacity of the cryptocurrency industry is demonstrated by its willingness to continue operating despite obstacles from regulations.
At the end of December 2023, Binance.US reached agreements with Arkansas, Illinois, and South Dakota regulators, allowing it to maintain operations in those relevant states. A crucial condition of these agreements is the irreversible transfer of Zhao’s voting rights, further distancing him from the exchange’s decision-making processes.
The above agreements show the exchange’s willingness to cooperate with state authorities to ascertain compliance with local regulations.
Following his guilty plea, Zhao tried to pledge his substantial $4.5 billion stake in Binance.US as security to avail permission to travel to his home in the United Arab Emirates (UAE).
However, Justice Richard Jones refused his request during a private hearing held on December 29. This decision adds another layer of complexity to Zhao’s legal situation as he awaits sentencing.