Oregon Revokes Binance.US’ License, Sixth State to do So

banner-image

Oregon 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, holding, or selling fiat or crypto for Oregon consumers. The division is 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 Takes a Bold Step

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.

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’ Operations in Other States

Binance.US never received licenses in New York, Texas, Vermont, or Hawaii. The exchange also announced the temporary suspension of USD deposits.

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. Meanwhile, Oregon has already taken a bold step.

Troubles Other Than Losing Oregon

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.

May 22, 2024

Top crypto and tech firms like Coinbase, Kraken and Ripple have..

May 22, 2024

Litecoin, Ethena, Rebel Satoshi ($RECQ) - 3 Solid Crypto Picks For..

May 22, 2024

Kelp DAO, a leading protocol in the liquid restaking sector, recently..

ads-image ads-image