Binance US Money Transmitter License Revoked in North Dakota

Binance US’s Money Transmitter License Revoked in North Dakota

North Dakota has revoked Binance US’s money transmitter license due to concerns over compliance and legal challenges faced by its founder, Changpeng Zhao. The North Dakota Department of Financial Institutions announced that Binance US did not comply with state laws.

The order from the department stated, “The Commissioner of the North Dakota Department of Financial Institutions has revoked the money transmitter license of BAM Trading Services, Inc. doing business as Binance.US.”

In April, Zhao pleaded guilty to violating U.S. anti-money laundering laws, resulting in a four-month prison sentence for Binance’s involvement. Zhao initially pled guilty in November 2023. However, Florida was the first state not to revoke BAM’s transmitter license. Other states, such as Alaska, Florida, Maine, North Carolina, and Oregon, have also revoked or declined to renew the exchange’s license.

The announcement cited several key reasons for the decision, with Zhao’s felony for violating federal anti-money laundering laws being a significant factor. Binance and Zhao were convicted federally for operating an unlicensed money-transmitting business. The decision to withdraw the license also highlighted Binance.US’s insufficient anti-money laundering program as a contributing factor.

During the investigation, North Dakota’s financial regulators raised concerns over the company’s lack of transparency and cooperation. They noted that Binance.US failed to provide necessary documents and records for compliance. This lack of cooperation, combined with Zhao’s conviction, ultimately led to the decision to revoke the license, breaching trust and regulatory standards.

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