North Dakota’s financial regulator has revoked the money transmitter license for Binance’s United States arm, Binance.US, marking it the seventh state to do so.
On June 17, Lise Kruse, Commissioner of the North Dakota Department of Financial Institutions (DFI), announced that BAM Trading Services, operating as Binance.US, failed to comply with state money transmitter laws.
The revocation order cited Binance and its founder Changpeng Zhao’s federal conviction in November for conspiracy to operate an unlicensed money-transmitting business and failure to maintain an effective anti-money laundering program as reasons for the license revocation.
Kruse noted that Zhao, the “majority beneficial owner and control person” of Binance, was recently convicted on felony charges for violating federal anti-money laundering laws.
“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.
Binance.US has 30 days to request a reversal of the order, with the deadline being July 17, 2024.
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If no request is made, the order will become effective.
North Dakota is now the seventh state to revoke or deny the renewal of a money transmission license requested by BAM Trading Services.
Similar actions have been taken by Alaska, Florida, Maine, North Carolina, and Oregon in recent months.
Florida was the first state to cease Binance.US’s services in November, following Zhao’s guilty plea. North Carolina and Maine followed suit on January 23 and January 29, respectively.
Furthermore, Binance.US has not received licenses in New York, Texas, Vermont, and Hawaii.
According to the Binance.US website, new user onboarding has also been temporarily paused in Connecticut, Georgia, Ohio, Minnesota, and Washington state.
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