States’ backlash against Binance.US continues with 6th license pulled
Derek Andersen2 hours agoStates’ backlash against Binance.US continues with 6th license pulledOregon joins five other states that have delicensed Binance.US after former Binance CEO Changpeng Zhao pleaded guilty to felony charges.556 Total views1 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksOregon has become the sixth state to revoke, suspend or decline to renew Binance.US’ license to operate there, following a spate of refusals earlier this year.
The Oregon Division of Financial Regulation announced on April 30 that it had revoked Binance.US’s license, as a result of which it is prohibited from accepting money for transmission or holding or selling fiat or crypto for Oregon consumers. The division explained in a statement:“Due to the nature of the felonies committed by [former Binance CEO Changpeng] Zhao, the Division has revoked Binance.US"s money transmission license.”
Oregon was following the example of five states that moved against the exchange after Zhao pleaded guilty to violating Anti-Money Laundering laws. Florida was the first state to act, suspending Binance.US’ license in November, shortly after Zhao’s guilty plea. Alaska followed suit at the beginning of January when it declined to renew its license.
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North Carolina suspended Binance.US’ license on January 23, and Maine declined to renew its license on January 29. According to a local press report, Connecticut suspended Binance.US’ license on April 24.
Binance.US never received licenses in New York, Texas, Vermont and Hawaii.
According to one page on the Binance.US website, its services are unavailable in Georgia and Ohio as well, although another page indicates that the exchange has licenses there. Binance opened a regional hub in Georgia with a staff of 25 in March 2023. Its license in Minnesota does not cover the exchange or transmission of virtual currency.Source: Binance.US Customer Support
That is not the full extent of Binance.US’ troubles. Binance.US chief operating officer Christopher Blodgett said in a court deposition in December that the exchange had taken a “near-mortal blow,” forcing it to lay off over 200 staff members, due to U.S. banks’ unwillingness to work with it.
The U.S. Securities and Exchange Commission (SEC) sued Binance in June. In that suit, the SEC claimed that Binance.US had failed to register as an exchange, broker and clearing agency. It further alleged that Binance.US lacked controls over “manipulative trading,” engaged in wash trading and had commingled funds with Binance, which created Binance.US in 2019 under regulatory pressure.
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