Binance.US will cease operations for customers in Washington state by August 20, 2024, due to regulatory issues and an expired operating license. The exchange is also unavailable in several other states and regions. This decision follows regulatory challenges, including license revocations in multiple states, highlighting the hurdles faced by the exchange. The involvement of Changpeng Zhao, the co-founder and former CEO of Binance, who indirectly owns Binance.US, raises additional regulatory concerns.

The U.S. Securities and Exchange Commission (SEC) has accused Binance.US of failing to provide adequate information regarding the custody of customer assets, raising concerns about security and protection of customer funds. Binance.US asserts its compliance with regulatory requirements and dismisses claims regarding the security of customer funds as unfounded.

Binance.US has set a deadline of August 20, 2024, for closing all accounts based in Washington state due to the expired operating license. The exchange is currently not available to customers in several other states and regions, including Alaska, American Samoa, Hawaii, Maine, New York, Oregon, Texas, Vermont, Guam, Northern Mariana Islands, and the U.S. Virgin Islands. The exchange’s struggle with regulatory compliance is a nationwide issue, as demonstrated by the revocation of licenses in multiple states.

The involvement of Changpeng "CZ" Zhao, the co-founder and former CEO of Binance, who indirectly owns Binance.US, has raised additional regulatory scrutiny and concerns about the autonomy and governance of the U.S. entity. The U.S. Securities and Exchange Commission (SEC) has also expressed dissatisfaction with Binance.US's responses to inquiries about the custody of customer assets. Although Binance.US maintains its compliance with regulatory requirements and addresses the SEC's inquiries, concerns about the security and protection of customer assets persist.