Multiple U.S. states have revoked or declined to renew Binance US money transmitter licenses due to compliance issues and legal troubles involving Binance and former CEO Changpeng Zhao (CZ). “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,” North Dakota’s financial regulator stated.
Multiple US States Have Revoked Binance US Crypto Licenses
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Binance US Faces Expanding State-Level License Revocations
A growing number of U.S. states have revoked or declined to renew the money transmitter licenses of BAM Trading Services Inc., which operates as Binance US. This action is due to various compliance issues and legal troubles associated with Binance and former CEO Changpeng Zhao (CZ).
The North Dakota Department of Financial Institutions is the latest U.S. state to revoke Binance US’ money transmitter license. The regulator announced on Monday:
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.
Zhao is currently serving a four-month prison sentence after Binance reached a settlement with the U.S. Department of Justice (DOJ). The former CEO pleaded guilty to violating the Bank Secrecy Act. As part of the plea agreement, Binance agreed to pay $4.3 billion in penalties and fines. The DOJ initially sought a three-year prison term for CZ.
“Money transmission activity includes receiving money or cryptocurrency to send to a location within or outside the United States on another person’s behalf,” North Dakota’s financial regulator detailed. “To lawfully engage in the business of money transmission, a license is required under North Dakota Century Code Chapter 13-09.1.”
Other states have also taken regulatory actions against Binance US, revoking or declining to renew its money transmitter license due to compliance issues. Florida suspended Binance US’ license in November last year, shortly after Zhao pleaded guilty to violating U.S. anti-money laundering laws. At the beginning of January this year, Alaska declined to renew the crypto exchange’s license, followed by North Carolina suspending it on Jan. 23 and Maine declining renewal on Jan. 29. Connecticut suspended Binance US’ license on April 24 while Oregon revoked it on April 30.
The North Dakota Department of Financial Institutions’ announcement concludes:
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.
What are your thoughts on the rising number of U.S. states revoking or denying the renewal of Binance US’ crypto licenses? Let us know in the comments section below.
