![]() ![]() The CFTC said it was seeking punishments including fines and permanent trading bans. “Defendants have disregarded applicable federal laws while fostering Binance’s US customer base because it has been profitable for them to do so,” the CFTC complaint stated. The complaint alleges that Binance has grown its US business despite publicly stating its intent to block US customers from accessing the platform.Īllegations in the complaint include a claim that even after announcing US restrictions Binance told its most valuable US customers how to avoid its compliance controls. The complaint also charges Binance’s former chief compliance officer, Samuel Lim, with helping Binance commit the violations. Join us on Telegram and follow us on Google News.The Commodity Futures Trading Commission (CFTC) said it had filed a civil enforcement action in a federal court in Chicago, charging Zhao and three entities that operate the Binance platform with numerous violations of the Commodity Exchange Act and CFTC regulations. ![]() Want alpha sent directly to your inbox? Get degen trade ideas, governance updates, token performance, can’t-miss tweets and more from Blockworks Research’s Daily Debrief.Ĭan’t wait? Get our news the fastest way possible. Subscribe to Blockworks’ free newsletter now. Get the day’s top crypto news and insights delivered to your email every evening. ![]() Investors in the round included Circle Ventures, Foundation Capital, Gaingels, Gold House, Original Capital, RRE Ventures and VanEck.īinance.US launched in September 2019 via a partnership with BAM Trading Services after Binance stopped serving US customers the same month. The Puerto Rico license comes after Binance.US hit a valuation of $4.5 billion, following the close of a $200 million seed financing round earlier this month. “We’re thrilled to offer our services in Louisiana, and like other states, look forward to working with state officials to demonstrate our compliance-first mindset.” “Each state, including Louisiana, has a unique set of requirements, and we are working to ensure that we will ultimately be able to operate in all 50 states,” Sidney Majalya, chief risk officer of Binance.US, said at the time. In March, Binance.US announced that it was available to Louisiana residents, meaning the exchange is now accessible in 45 US states. ![]() Not all states, however, require a license in order for an exchange to operate. The exchange has secured accreditation in Connecticut, West Virginia and Wyoming since January. The new license marks Binance.US’ fourth this year. “Puerto Rico, in particular, is an important market for the growth of crypto and we look forward to continuing to offer its residents secure, reliable, and low-fee access to a robust selection of tokens,” Binance.US CEO Brian Shroder said in a statement Tuesday.Īny company where an “order of payment is received, including but not limited to, bank drafts, checks, personal money orders, or any other means of money transmission or payment, including those carried out by electronic transfer, wire, telephone, or any other medium to be transferred to a beneficiary” is required to obtain a money transmitter license in Puerto Rico, according to the Nationwide Multistate Licensing System and Registry Resource Center. The spokesperson did not respond to inquiries about how the new license changes existing services. Binance.US first moved in September 2019 to allow Puerto Rico residents access to the same services as American residents in a now-deleted blog post.Ī spokesperson from Binance.US confirmed that residents of Puerto Rico have been able to access services on the exchange prior to the money transmitter license being granted.
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