Regulators in Florida and Alaska have told Binance US that it can no longer serve its residents, according to reporting from the Wall Street Journal (WSJ).
Binance US, the state-side arm of crypto exchange Binance, was reportedly denied a license renewal by the Alaska Division of Banking and Securities. Similarly, Florida’s Office of Financial Regulation sent an emergency suspension order against Binance US’ money transmitter license.
The latter is said to have come just a week after Binance and its former chief Changpeng Zhao (CZ) reached a plea deal agreement for violating US anti-money laundering rules at the end of November.
Speaking to the WSJ, a spokesperson for Binance US said that the firm was “in active dialogue with state officials.” However, she declined to comment on whether the crypto exchange would appeal the decisions by Alaska and Florida.
Arkansas, Illinois, and South Dakota reached a deal with Binance US in December that would allow it to keep operating in its jurisdictions. However, the agreement required Binance US to make CZ’s transfer of voting rights irreversible.
According to the spokesperson, CZ has already stepped down from Binance US’ board of directors. His voting rights have been transferred to current CEO Norman Reed, who took the helm on an interim basis in September following the departure of former chief Brian Shroder.
CZ is slated to be sentenced on February 23. He faces 18 months in prison.