Binance.US Banned from Operating in Alaska and Florida
Regulators in Florida and Alaska have recently banned Binance.US, the American branch of the exchange platform Binance, from serving residents in their states.
In Florida, the financial regulatory authority, known as the Office of Financial Regulation, issued an ’emergency suspension order’ that temporarily and immediately suspends Binance.US’s ability to operate as an authorized money transmitter for Florida residents.
In Alaska, the Division of Banking and Securities refused to renew Binance.US’s license in January 2024.
The Legal Challenges of Binance and CZ
After pleading guilty, former Binance CEO Changpeng Zhao, known as CZ, sought to secure his freedom to travel back home to the United Arab Emirates. However, this request was denied by Judge Richard Jones in a private hearing, even though CZ offered his substantial stake of $4.5 billion in Binance.US as bail.
Zhao’s hearing is scheduled for February 23, 2024, and he could face up to 18 months in prison.
Despite these events, Binance.US has stated that it will remain fully operational and determined to continue offering its products and services. Additionally, states such as Arkansas, Illinois, and South Dakota have reached agreements with Binance.US, allowing it to continue operations.
Today, Binance remains the largest exchange platform in the entire cryptocurrency ecosystem, far ahead of Coinbase and Kraken.