Alaska and Florida tell the exchange that it’s not welcome in their states
Binance.US cryptocurrency exchange is still under pressure from US regulators in the wake of the former CEO Changpeng Zhao’s guilty plea. Florida and Alaska regulators have communicated to Binance.US that the firm can no longer serve residents in their states, according to a report by The Wall Street Journal on January 25.
The Alaska Division of Banking and Securities has reportedly rejected renewing Binance.US’s license in January 2024. The Florida Office of Financial Regulation has also placed an emergency suspension order against Binance.US’s license a week after Zhao pleaded guilty to violating US Anti-Money Laundering laws on November 21, 2023.
A US federal court accepted Zhao’s guilty plea to one count of Bank Secrecy Act offenses in December 2023. Zhao resigned as Binance.US CEO as part of the settlement. His voting rights were also transferred through a proxy agreement, terminating his impact on the governing of the firm.
Binance.US continues to operate in the US despite government efforts against the global Binance exchange. “We remain fully operational and are committed to continuing to serve our customers with the same products and services as we always have,” the company wrote on November 28.
State regulators in Arkansas, South Dakota and Illinois reportedly reached a deal with Binance.US in December that would permit it to continue operating. Binance.US is required to make Zhao’s voting rights transfer irreversible as part of the agreement.
Zhao tried to pledge his $4.5 billion stake in Binance.US as security in exchange for being allowed to temporarily travel to his home in the United Arab Emirates, which Judge Richard Jones denied in a December 29 private hearing.
Zhao is scheduled for sentencing on February 23, 2024, and could face up to 18 months in federal prison.
