Binance US is dealing with increased regulatory challenges. The company, which was already under scrutiny following CEO Changpeng Zhao’s resignation and investigations by the US Department of Justice, has now faced a regulatory freeze, resulting in the suspension of operations in Alaska and Florida.
In the most recent development, Florida regulators have taken legal action against Binance US, deeming the crypto giant a potential threat to public safety.
As a precautionary measure, regulators have suspended Binance US services in the state, emphasizing the importance of protecting the public’s interests. Binance US obtained a money services license in Florida in 2020, which will expire in April 2024.
The regulatory hurdles for Binance US do not end there; Alaska’s banking division has decided not to renew Binance US’s license, withholding the reasons for the decision.
The setbacks in Alaska and Florida highlight regulators’ growing efforts to exert control over crypto entities operating in the United States.
The recent leadership change at Binance, combined with criminal charges against its founder and former CEO Changpeng Zhao for poor anti-money laundering practices, has exacerbated the situation.