Why is the leading crypto exchange not available in Texas?

Binance has established itself as the world’s leading cryptocurrency exchange. However, he did not climb to the top unhindered. Regulatory roadblocks have plagued Binance for the past two years.

However, a number of countries changed their mind and allowed the crypto exchange to operate within their borders. However, the same cannot be said of 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 of the United States, including Texas, New York or Florida due to regulatory issues. In response to a policy change from Binance, investors from these states are no longer allowed. The famous crypto exchange established its office in the United States in September 2019. However, it was not available to residents of the aforementioned states and ten other states due to regulatory uncertainty.

To advertise

The crypto exchange initially banned US customers in September 2019 and announced the launch of Binance.US through a partnership with BAM Trading Services to meet growing regulatory requirements. Customers in approved states were required to follow stricter know-your-customer (KYC) procedures than the previously required exchange, including the requirement to submit photos of valid ID and Social Security numbers.

During the launch, exchange link Catherine Coley revealed that Binance US and Binance.com were two separate organizations, indicating that assets on Binance.com could not be quickly transferred between exchanges. During the early months of 2019, Binance.com decided to ban US customers from using the platform. This was a compliance measure in light of increased oversight by 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 little longer to use Binance.

In March, Wyoming was last on 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 obtain a remittance license from the State Department of Banking. In Georgia, the United States Foreign Exchange Department required a payment instrument seller license issued by the State Department of Banking and Finance.

Since the launch of Binance.US, Binance International has been subject to regulatory scrutiny. 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 found its way back to Italian crypto investors. As late 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 tighter scrutiny in recent months, as evidenced by the SEC’s request for information on two companies owned by founder Changpeng Zhao. Following the SEC investigation, Texas has tightened its regulatory grip on the cryptocurrency exchange.

Texas’ take on cryptocurrency

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

The Texas State Securities Board’s most recent action is not words, but rather actions: An emergency injunction has been issued against a company using the Binance name.

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

Since then, the company has apparently ditched its former name “Delta Crypt” and launched an online investment program – though 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 had not disclosed material information, including the past involvement of Philippine government agencies, to its officials.

He also failed to advise investors on the dangers of cryptocurrency trading and illegally hired sales agents. This means 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 and has recently issued citations against two alleged Ponzi schemes with fines of $10,000 or two to ten 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 geographical restrictions by using a VPN. Users can also use VPNs to secure and protect their actions from government agencies, hackers, and ISPs.

Leave a Comment