North Dakota Revokes Binance.US Money Transmitter License

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North Dakota regulators have taken away Binance.US’ money transmitter license. Notably, this is the seventh state to take such action against the Binance-associated entity. Lise Kruse, Commissioner of the North Dakota Department of Financial Institutions (DFI), stated that BAM Trading Services, operating as Binance.US, failed to comply with money transmitter laws.

North Dakota Takes a Huge Step

The revocation order cited several critical reasons, including a November federal conviction of Binance and its founder, Changpeng Zhao, for conspiracy to conduct an unlicensed money-transmitting business and a failure to maintain an effective anti-money laundering (AML) program.

Kruse emphasized Zhao’s recent conviction on felony charges for violating federal AML laws as a significant factor in the decision to revoke the license. “The Commissioner finds the Respondent does not continue to meet the qualifications or satisfy requirements that may apply to an applicant for a new money transmitter license,” the revocation order declared.

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Binance.US has the option to appeal this decision within 30 days and the deadline set for July 17. If no appeal is made, the order will become effective. Also, the list of states taking similar actions against Binance.US continues to increase and currently includes Alaska, Florida, Maine, North Carolina, and Oregon have recently revoked or denied the renewal of money transmission licenses for BAM Trading Services.

North Dakota Joins a Growing Lists of State

Florida was the first state to halt Binance.US services in November, shortly after Zhao pleaded guilty to the federal charges. North Carolina and Maine followed in January, taking similar measures on January 23 and January 29, respectively. Binance.US also failed to secure licenses in New York, Texas, Vermont, and Hawaii. Moreover, new user onboarding has been temporarily paused in several other states, including Connecticut, Georgia, Ohio, Minnesota, and Washington, according to the Binance.US website.

The regulatory scrutiny on Binance.US reflects broader concerns over the company’s compliance with U.S. financial regulations. The crackdown is part of an intensified effort by state regulators to ensure that cryptocurrency exchanges adhere to stringent AML and money transmitter laws.

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Legal Troubles

Binance has faced legal trouble in other parts of the world as well and it seems that the exchange’s problems are not coming to an end anytime soon.

In the meantime, Binance.US users and investors are advised to stay informed about the evolving regulatory environment and its potential impact on their investments. The company’s ability to restore its compliance status and regain regulatory approvals will be crucial in determining its long-term viability in the U.S. market.

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