Key Points
- North Dakota has revoked Binance.US’s money transmitter license due to non-compliance with state laws.
- The decision reflects a growing trend of regulatory scrutiny of Binance.US across the United States.
North Dakota has joined the list of U.S. states that have taken action against Binance.US. The state’s Department of Financial Institutions (DFI) has revoked the company’s money transmitter license, marking the seventh time such action has been taken.
This action was taken due to Binance.US’s failure to abide by the state’s money transmitter laws. The decision highlights the growing trend of regulatory scrutiny Binance.US is facing across the country.
Non-compliance Leads to License Revocation
DFI Commissioner Lise Kruse stated that Binance.US did not meet the requirements to maintain its license. The revocation order cited a federal conviction of Binance and its founder, Changpeng Zhao, for operating an unlicensed money-transmitting business. Zhao’s felony conviction for breaching federal anti-money laundering laws played a significant role in this decision.
Binance.US has until July 17, 2024, to request a reversal of the order. If no request is made, the revocation takes effect immediately.
Other states, including Alaska, Florida, Maine, North Carolina, and Oregon, have also revoked or denied the renewal of money transmission licenses for Binance.US. Florida was the first state to act in November 2023 following Zhao’s guilty plea. North Carolina and Maine followed in January 2024.
Despite these revocations, Binance.US has not received licenses in states like New York, Texas, Vermont, and Hawaii. Additionally, new user onboarding has been temporarily paused in Connecticut, Georgia, Ohio, Minnesota, and Washington state.
Regulatory Challenges Impacting Binance.US Operations
The increasing number of states revoking or denying licenses to Binance.US reflects a tightening regulatory environment for cryptocurrency exchanges in the United States. These actions are part of increased scrutiny on crypto companies’ practices, especially regarding compliance with anti-money laundering regulations and other financial laws.
Binance.US’s ability to operate within the United States is becoming more restricted, potentially affecting its user base and market operations. The company’s adherence to regulatory standards will play a crucial role in determining its future in the US market.
The regulatory measures against Binance.US are indicative of a broader trend of increased oversight in the cryptocurrency sector. The aim is to ensure that exchanges adhere to strict legal standards. As more states join this regulatory crackdown, the landscape for crypto exchanges in the US continues to evolve, emphasizing the importance of compliance and transparency in the industry.
