Binance.US Halts Crypto and Derivatives Services to Washington Users Due to Regulatory Sanctions

Binance continues to face significant regulatory challenges, with the latest coming from Washington. Various countries have imposed fines

Binance users in Washington will no longer be able to access the exchange’s crypto and derivatives services after the exchange lost its operating license in the state. Binance.US users will have until August 20 to close out their positions and withdraw their funds.

The development marks the eighth major regulatory setback for Binance.US in the United States, following former CEO Changpeng Zhao’s guilty plea to violating anti-money laundering regulations last year.

Binance.US, which was established in 2019 as a separate entity from Binance.com, has operated independently but shares software, branding, and logos with its parent company. However, U.S. regulators have accused Binance.US of commingling funds with Binance.com, especially after four months in prison for Zhao.

In June, North Dakota revoked Binance.US’s money transmitter license, forcing the exchange to suspend all transactions for clients in the state. Oregon followed suit shortly after, suspending the exchange’s money transmitter licenses.

Furthermore, Binance.US also stopped onboarding new users in Georgia, Connecticut, Minnesota, and Ohio and had its licenses revoked in New York, Texas, Vermont, and Hawaii.

The Securities and Exchange Commission has also taken aim at Binance.US, accusing it of failing to comply with registration protocols and lacking adequate measures to curb wash trading, manipulative trading, and money laundering.

While the SEC attempted to freeze Binance.US’s assets in June, a judge ultimately denied the request.

Outside of the United States, India’s Financial Intelligence Unit also fined Binance.US $2.25 million for violating anti-money laundering regulations in the country. This comes after a four-month operational ban and a $2 million fine in January for failing to register and comply with Indian laws.

BNB Price Analysis

BNB prices have been trending lower since June 7, dropping nearly 22% to mark a daily low near $566 on June 27. Nevertheless, some buying pressure appears to be emerging at a multi-month trendline support, helping BNB prices recover a portion of the day’s losses.

A closer look at the chart reveals a bearish market sentiment, as indicated by the histogram bars being predominantly negative on the Bull and Bear Power technical indicator. This suggests that sellers are outpacing buyers in the market, and the bears are maintaining a strong presence.

If BNB prices fail to overcome the downtrend resistance, we can expect the Binance token price to lose altitude and drop to a support level around $538. Any breach of immediate support levels could see the BNB price heading towards the next support at $506 before recovering.

On the other hand, any recovery rally from here could see the BNB price rise to the confluence of the 20-day (red) and 50-day (purple) EMA, which acts as a resistance level around $596. Furthermore, flipping the immediate resistance could see the BNB price rally to the next resistance at $638.

The relative strength index for BNB remained largely neutral, clocking in at 39.85 on the daily charts.

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