North Dakota’s financial regulator has revoked a money transmitter license for Binance’s U.S arm, making it the seventh state to do so.
On June 17, Commissioner Lise Kruse of the North Dakota Department of Financial Institutions (DFI) stated that BAM Trading Services, which operates under Binance.US, did not adhere to the state’s money transmitter laws.
A revocation order cites Binance and its founder Changpeng Zhao’s November federal conviction for conspiracy to conduct an unlicensed money-transmitting business and failing to maintain an effective anti-money laundering program as justifications for revoking the license.
According to Kruse and Zhao, Binance’s “majority beneficial owner and control person,” was recently convicted of felony charges for violating federal anti-money laundering statutes.
“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.
The United States can request the reversal of the order within the next 30 days. This request will expire on July 17, 2024. If no request is submitted by that time, the order will be implemented.
BAM Trading Services has requested the renewal of a money transmission license from North Dakota, the seventh state, to revoke or deny the request. In recent months, Alaska, Florida, Maine, North Carolina, and Oregon have implemented comparable measures.
The initial jurisdiction to discontinue Binance was Florida. Shortly after Zhao entered a guilty plea in November, the United States provided services.
North Carolina and Maine were the subsequent U.S. states to adopt this policy on January 23 and 29, respectively. Binance.US never received licenses in New York, Texas, Vermont and Hawaii.
According to the Binance.US website, the enrollment process for new users has been temporarily suspended in Connecticut, Georgia, Ohio, Minnesota, and Washington state.
