- North Dakota has invalidated Binance US’ money transmitter license due to compliance issues.
- The North Dakota Department of Financial Institutions announced that Binance US failed to comply with North Dakota laws.
- Other US states, such as Alaska, Florida, Maine, North Carolina, and Oregon, have also revoked or declined to renew the exchange’s license.
North Dakota has become the latest state to revoke Binance US’s license to operate as a money transmitter, citing compliance failures and the legal troubles of its founder, Changpeng Zhao. This move adds to the growing regulatory pressure on the cryptocurrency exchange as it grapples with lawsuits and investigations across the United States.
The regulator’s official announcement stated:
“The Commissioner has found that BAM Trading Services, Inc. has failed to comply with North Dakota laws. Additionally, majority beneficial owner and control person, Changpeng Zhao, has pled guilty to felony charges for violating the U.S. anti-money laundering laws.”
CZ recently was sentenced to a four-month’ prison after pleading guilty to violating anti-money laundering laws. This followed a lawsuit by the Securities and Exchange Commission (SEC) against Binance for allegedly offering unregistered securities, which resulted in a $4.3 billion settlement. CZ also agreed to pay a $50 million personal penalty.
North Dakota’s action follows similar moves by other states in response to Binance’s legal challenges. The North Dakota Department of Financial Institutions stated:
“North Dakota joins Alaska, Florida, Maine, North Carolina, and Oregon who have taken similar actions to revoke or deny the renewal of BAM Trading Services’ Money Transmission License.”
Notably, Florida had suspended the exchange’s license in November 2023, shortly after CZ’s guilty plea. Alaska denied Binance.US’s license renewal in January, and North Carolina and Maine followed suit in the same month. Connecticut suspended the license on April 24, and Oregon revoked it on April 3.
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