North Dakota’s financial regulatory body has officially revoked the money transmitter license of Binance’s United States branch, Binance.US, marking the seventh state to take such action. Commissioner Lise Kruse of the North Dakota Department of Financial Institutions (DFI) announced on June 17 that BAM Trading Services, operating as Binance.US, failed to adhere to the state’s money transmitter regulations.
The revocation order specifically references Binance and its founder Changpeng Zhao’s federal conviction in November for conspiring to operate an unlicensed money-transmitting business, as well as their failure to maintain an effective Anti-Money Laundering (AML) program. Kruse also mentioned that Zhao, identified as Binance’s “majority beneficial owner and control person,” recently faced felony charges for violating federal AML laws.
According to the revocation order issued by the North Dakota DFI, Binance.US has not met the necessary qualifications or requirements for a new money transmitter license application. The company has the option to request a reversal of the order within 30 days, until July 17, 2024, failing which the order will come into effect.
North Dakota joins a list of states, including Alaska, Florida, Maine, North Carolina, and Oregon, that have either revoked or denied renewal of money transmission licenses for BAM Trading Services. Following the initial action taken by Florida in November, other states like North Carolina and Maine followed suit in January.
It is worth mentioning that Binance.US did not secure licenses in New York, Texas, Vermont, and Hawaii, and has temporarily halted new user onboarding in Connecticut, Georgia, Ohio, Minnesota, and Washington state. The company’s operations have come under scrutiny, with reports of a $40 million bribe claim and ongoing tensions between the US and China impacting its services.