Why is Binance restricted in the US?

On the 21st of November, 2023, a significant legal milestone was reached in the world of cryptocurrency, as Binance, a prominent player in the industry, faced a series of serious accusations in a US court. The verdict delivered by the presiding judge underscored the gravity of the allegations leveled against the exchange.

Among the multiple charges that Binance was convicted of, one stood out prominently: violations of the Bank Secrecy Act. This law, designed to prevent money laundering and terrorist financing, mandates strict reporting requirements for financial institutions, including cryptocurrency exchanges.

The conviction also encompassed accusations of money laundering schemes, highlighting concerns over Binance's potential role in facilitating the illegal movement of funds. This finding underscores the importance of regulatory oversight in ensuring the integrity of the cryptocurrency market.

Additionally, Binance was found guilty of unlicensed money transmitting, a violation that speaks to the exchange's failure to comply with licensing requirements set forth by regulatory authorities. This underscores the need for cryptocurrency exchanges to operate within the confines of the law and obtain the necessary approvals to conduct their business.

Moreover, sanctions violations were also listed among the charges. This highlights the sensitivity of operating in a globalized economy, where respecting international sanctions is crucial to maintaining a positive reputation and avoiding legal consequences.