(CTN News) – Binance.US, a cryptocurrency exchange platform, faces ongoing challenges, exacerbated by regulatory scrutiny, especially in Florida and Alaska.
Regulatory blows delivered to Binance.US by Alaska and Florida
In a recent decision, the Florida Office of Financial Regulation ruled against Binance. Under Florida law, this is known as BAM Trading.
In the event of a threat to public health, safety, or welfare, the operation may be suspended immediately. BAM Trading’s work was found to pose an immediate threat to the public, causing the suspension.
There were regulatory issues with Binance.US’s banking division in Alaska, as it rejected a license renewal for reasons that are not yet clear.
Regulators are stepping up their scrutiny and enforcement of compliance in the U.S. cryptocurrency market as a result of these actions.
In Alaska and Florida, Binance.US is facing regulatory hurdles as part of a wider crackdown. With the leadership changes and criminal charges against former CEO Changpeng Zhao, the company’s regulatory landscape is becoming more complex. In order to address these concerns, Binance.US needs to collaborate with regulators to navigate these challenges.
Settlement in Florida involving Bitcoin (BTC)
A settlement with the CFTC in July 2023 saw two Florida residents pay more than $5 million in restitution to the agency.
They were accused of defrauding investors, deceiving investors, and swindling funds meant for purchasing Bitcoin (BTC) in 2018. With this case, the CFTC is becoming increasingly vigilant in its enforcement of US regulations.
The safety of Binance and tax strategies
The Glassnode website listed a number of ways in which crypto investors can minimize their tax liabilities, including moving to a state that is tax-friendly. As a result of the analysis, it was found that states such as Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, and Wyoming offer good options for wealth preservation since they do not impose income taxes.
A security update in August 2022 ensured the safety of users. A number of Binance Consumer Congressmen.
House Oversight and Government Reform’s subcommittee chair requested official documents to demonstrate the firm’s adherence to investor-centric safety procedures, demonstrating a commitment to protecting users.