Thomas Daniels
North Dakota has revoked Binance US’s money transmitter license following compliance concerns and the recent legal issues surrounding its founder, Changpeng Zhao. The North Dakota Department of Financial Institutions cited non-compliance with state laws as the primary reason for the decision.
In an official statement, the Department noted, “The Commissioner of the North Dakota Department of Financial Institutions has revoked the money transmitter license of BAM Trading Services, Inc., operating as Binance.US.”
Zhao’s recent legal troubles, including a guilty plea in April to violating U.S. anti-money laundering (AML) laws, played a significant role in the decision. This plea led to a four-month prison sentence related to Binance’s operations. Zhao first admitted guilt in November 2023, which notably did not result in Florida revoking Binance.US’s license at that time. However, several other states, including Alaska, Maine, North Carolina, and Oregon, have since taken action against the exchange.
The revocation in North Dakota is part of a broader trend where regulatory bodies are increasingly scrutinizing Binance US’s compliance measures. The decision pointed out key issues such as Zhao’s federal felony for operating an unlicensed money-transmitting business and the exchange’s inadequate AML program.
Further aggravating the situation was Binance.US’s lack of cooperation during the investigation. The regulators highlighted the company’s failure to provide necessary documents and records, exacerbating concerns over transparency and adherence to regulatory standards. The combination of these factors ultimately led to the withdrawal of the license, citing a breach of trust and regulatory compliance.
