North Dakota’s financial regulator has revoked Binance.US’s money transmitter license, making it the seventh state to take such action.
Lise Kruse, Commissioner of the North Dakota Department of Financial Institutions (DFI), announced that BAM Trading Services, operating as Binance.US, failed to comply with the state’s money transmitter laws.
The revocation order cites the November federal conviction of Binance and its founder, Changpeng Zhao, for conspiracy to conduct an unlicensed money-transmitting business and failing to maintain an effective anti-money laundering program. Kruse further highlighted that Zhao, the “majority beneficial owner and control person” of Binance.
“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 states.
Binance.US has until July 17, 2024, to request a reversal of the order, which would halt its effect.
North Dakota joins six other states—Alaska, Florida, Maine, North Carolina, and Oregon—in revoking or denying the renewal of Binance.US’s money transmitter license.
Florida led the charge in November 2023 following Zhao’s guilty plea, with North Carolina and Maine following in January 2024. The Alaska Division of Banking and Securities reportedly denied the renewal of Binance.US’s license in January 2024.
On April 30, the Oregon Division of Financial Regulation also announced the revocation of Binance.US’s license, effectively prohibiting the exchange from accepting money for transmission or holding and selling fiat or cryptocurrency to Oregon consumers. The regulator also pointed to Zhao’s conviction as a major reason for this action.
The Division’s statement read:
“Due to the nature of the felonies committed by [former Binance CEO Changpeng] Zhao, the Division has revoked Binance.US’s money transmission license.”
According to its website, Binance.US has also temporarily paused new user onboarding in Connecticut, Georgia, Ohio, Minnesota, and Washington state. Notably, the company does not have licenses in New York, Texas, Vermont, and Hawaii.
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