North Dakota is the seventh state to revoke Binance.US’s license for violating money transmitter laws.
Commissioner Lise Kruse of the DFI announced the decision on June 17th. She pointed out that BAM Trading Services, operating as Binance.US, had failed to comply with regulatory requirements.
Commissioner’s Announcement on Binance.US
The revocation order specifies several key reasons for the decision. This includes Binance and Changpeng Zhao’s federal conviction for operating an unlicensed money-transmitting business. The order also cites Binance.US’s inadequate anti-money laundering program as a reason for the license withdrawal.
“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. This action underscores the state’s commitment to enforcing stringent regulatory standards in financial services. It ensures compliance with laws designed to safeguard consumers and prevent illicit financial activities.
Source: X
Binance has faced increasing scrutiny and regulatory challenges in various jurisdictions worldwide. The revocation of its license in North Dakota reflects a broader trend of regulatory tightening around cryptocurrency operations. This trend particularly concerns compliance with anti-money laundering and financial regulatory standards.
The decision by North Dakota’s DFI highlights the importance of regulatory compliance for crypto exchanges operating in the United States. It also serves as a reminder of the consequences of failing to adhere to state-specific money transmitter laws and federal mandates aimed at combating financial crime.
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