Why Is The Leading Crypto Exchange Not Available In Texas? – Tech Tribune France

Binance has established itself as the world’s premier cryptocurrency exchange. He did not rise to the top unopposed, however. Regulatory roadblocks have plagued Binance for the past two years.

However, a number of countries changed their minds and allowed the crypto exchange to operate within their borders. However, the same cannot be said for the state of Texas in the United States. The conservative state of Texas has maintained its position that this particular exchange is prohibited within its borders.

Binance remains unwelcome in Texas

Binance is not accessible in some states in the United States, including Texas, New York, or Florida, due to regulatory issues. In response to a Binance policy change, investors from these states are no longer permitted. The famous crypto exchange established its office in the United States in September 2019. However, it was not available to residents of the states mentioned above and ten other states due to regulatory uncertainty.

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The crypto exchange initially banned US customers in September 2019 and announced the launch of Binance.US through a collaboration with BAM Trading Services to meet growing regulatory requirements. Customers in approved states had to follow more stringent know-your-customer (KYC) procedures than the previously required exchange, including the requirement to submit photographs of valid ID and social security numbers.

During the launch, exchange liaison Catherine Coley revealed that Binance US and Binance.com were two separate organizations, indicating that assets held on Binance.com could not be quickly transferred between exchanges. During the first months of 2019, Binance.com decided to ban US customers from using the platform. This was a compliance measure in light of increased regulatory scrutiny from the SEC and CFTC.

Binance.US, the US subsidiary of the global headless cryptocurrency exchange, is now accessible in 45 US states. However, residents of Hawaii, Idaho, New York, Texas, and Vermont will have to wait a bit longer to use Binance.

In March, Wyoming was the latest to be removed from the blacklist of crypto exchanges. US regulations have limited access to cryptocurrency trading in the state, making it difficult for traders to open accounts and buy bitcoin.

In January 2022, Binance.US launched operations in Connecticut, where the exchange had to acquire a money transfer license from the State Department of Banking. In Georgia, the United States foreign exchange arm required a Payment Instrument Vendor License issued by the State Department of Banking and Finance.

Since the launch of Binance.US, Binance International has been under regulatory investigation. Regulators in the UK and Italy have banned the exchange from operating in their countries, while officials in Hong Kong and Japan have warned investors. However, the crypto exchange has managed to find its way back to Italian crypto investors. As recently as September 2021, the United States government was investigating the crypto exchange for tax evasion, money laundering, and insider trading, according to Bloomberg reports.

The crypto exchange has come under increased regulatory scrutiny in recent months, as evidenced by the SEC’s request for information regarding two companies owned by its founder Changpeng Zhao. Following the SEC investigation, Texas has tightened its regulatory grip on the cryptocurrency exchange.

Texas’ view on cryptocurrency

For a time, Texas regulators viewed cryptocurrency investment schemes as a danger to regular investors, and they continued to issue public warnings against possible crypto-related fraud throughout. the COVID-19 epidemic. On the other hand, scammers have found a way to impersonate the leading crypto exchange in order to operate in Texas.

The most recent action by the Texas State Securities Board is not words but rather actions: an emergency cease and desist order was issued against a company using the Binance name.

According to an official statement, the target of the order is a company that claims to operate from the UK and has already been warned by securities regulators in the Philippines. They had previously said that Delta Crypt was illegally selling titles paying “ridiculous” rates, calling on people to avoid it.

Since then, the company has apparently ditched its former name “Delta Crypt” and launched an online investing program – while not registered to sell securities in Texas – using various misleading terms such as Binance Assets, BinanceAssets and Bit Kind Ltd.

Consequently, the TSSB called these offers fraudulent and misleading, noting that Delta Crypt failed to disclose material information, including the prior involvement of Philippine government authorities, to its officials.

He also neglected to advise investors on the dangers of cryptocurrency trading and illegally hired sales agents. This implies that the company agrees to pay commissions regardless of registration requirements or obtaining a license.

The TSSB is taking a tough stance against fraud in the crypto industry, recently issuing citations against two alleged Ponzi schemes with fines of $10,000 or two to 10 years in prison.

Despite Binance’s regulatory ban, people have found a way around this problem by using virtual private networks (VPNs). Investors can buy, trade, and deposit coins on Binance without geographic restrictions, through the use of a VPN. Users can also use VPNs to secure their actions and keep them safe from government agencies, hackers, and ISPs.

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Why Is The Leading Crypto Exchange Not Available In Texas? – Tech Tribune France


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