Multiple U.S. states have revoked or declined to renew Binance US’s money transmitter licenses due to compliance issues and legal troubles involving former CEO Changpeng Zhao (CZ). According to North Dakota’s financial regulator, “North Dakota joins Alaska, Florida, Maine, North Carolina, and Oregon in taking similar actions to revoke or deny the renewal of BAM Trading Services’ Money Transmission License.”
Binance US Faces Increasing State-Level License Revocations
An increasing number of U.S. states have revoked or declined to renew the money transmitter licenses of BAM Trading Services Inc., operating as Binance US, due to compliance issues and legal troubles tied to former CEO Changpeng Zhao (CZ).
The latest revocation comes from the North Dakota Department of Financial Institutions, which announced on Monday:
“The Commissioner has found that BAM Trading Services, Inc. has failed to comply with North Dakota laws. Additionally, majority beneficial owner and control person, Changpeng Zhao, has pled guilty to felony charges for violating U.S. anti-money laundering laws.”
Zhao is currently serving a four-month prison sentence following a settlement between Binance and the U.S. Department of Justice (DOJ). He pleaded guilty to violating the Bank Secrecy Act, and Binance agreed to pay $4.3 billion in penalties and fines. Initially, the DOJ had sought a three-year prison term for Zhao.
North Dakota’s financial regulator explained:
“Money transmission activity includes receiving money or cryptocurrency to send to a location within or outside the United States on another person’s behalf. To lawfully engage in the business of money transmission, a license is required under North Dakota Century Code Chapter 13-09.1.”
Several other states have also taken regulatory actions against Binance US for compliance issues. Florida suspended Binance US’s license in November last year, shortly after Zhao’s guilty plea for violating U.S. anti-money laundering laws. Earlier this year, Alaska declined to renew the crypto exchange’s license, followed by North Carolina suspending it on January 23, and Maine declining renewal on January 29. Connecticut suspended Binance US’s license on April 24, and Oregon revoked it on April 30.
Source: news.bitcoin.com
