Binance.US, the United States arm of Binance, has had its money transmitter license revoked by North Dakota’s financial regulator, making it the seventh state to do so. Lise Kruse, the Commissioner of the North Dakota Department of Financial Institutions, stated that BAM Trading Services, which operates as Binance.US, failed to comply with the state’s money transmitter laws. The decision to revoke the license was based on Binance and its founder Changpeng Zhao’s federal conviction for conspiracy to conduct an unlicensed money-transmitting business, as well as the failure to maintain an effective Anti-Money Laundering (AML) program. Kruse also mentioned that Zhao, Binance’s “majority beneficial owner and control person,” was recently convicted on felony charges for violating federal AML laws.
The revocation order states that Binance.US has the right to request a reversal of the order within 30 days, which would expire on July 17, 2024. If no request is made by then, the order will become effective. North Dakota is the seventh state to take such action against BAM Trading Services, with Alaska, Florida, Maine, North Carolina, and Oregon having done so in recent months.
Florida was the first state to halt Binance.US’ services in November, shortly after Zhao pleaded guilty. This was followed by North Carolina and Maine. Binance.US has never obtained licenses in New York, Texas, Vermont, and Hawaii. Furthermore, new user onboarding has been temporarily paused in Connecticut, Georgia, Ohio, Minnesota, and Washington state. The US and China have been making efforts to crush Binance, with claims of a $40 million bribe.