Oregon has joined the ranks of five other states in revoking, suspending, or declining to renew Binance.US’ license to operate within its borders. The Oregon Division of Financial Regulation made the announcement on April 30, stating that the license had been revoked, effectively prohibiting Binance.US from accepting money for transmission or engaging in the sale of fiat or cryptocurrency for Oregon consumers. This decision comes in response to Binance.US CEO Changpeng Zhao’s guilty plea for violating Anti-Money Laundering laws, following similar actions taken by Florida, Alaska, North Carolina, Maine, and Connecticut earlier this year.
Binance.US had never obtained licenses in New York, Texas, Vermont, and Hawaii. The exchange’s services are also reportedly unavailable in Georgia and Ohio, although conflicting information on its website suggests that licenses are in place for these states. Notably, Binance established a regional hub in Georgia in March 2023 but its license does not cover the exchange or transmission of virtual currency.
These troubles are just the tip of the iceberg for Binance.US. Chief Operating Officer Christopher Blodgett revealed in a court deposition in December that the exchange had suffered significant setbacks, resulting in the layoff of over 200 employees due to U.S. banks’ reluctance to collaborate with them.
Adding to their woes, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Binance in June. The SEC claimed that Binance.US had failed to register as an exchange, broker, and clearing agency, alleging that the company lacked adequate controls over manipulative trading, engaged in wash trading, and mingled funds with its parent company Binance, which was established in 2019 under regulatory pressure.
In summary, Binance.US continues to face mounting challenges as it grapples with regulatory issues, license revocations, and legal battles.