- North Dakota has revoked Binance US’s money transmitter license due to compliance violations.
- Other states including Alaska, Florida, Maine, North Carolina, and Oregon have similarly suspended or not renewed the exchange’s license.
- “CZ was sentenced to a four-month prison term after pleading guilty to violating anti-money laundering laws,” stated the authorities.
North Dakota has revoked Binance US’s money transmitter license due to compliance issues amidst rising legal challenges and regulatory scrutiny.
Heightened Regulatory Pressure on Binance US
In a significant regulatory move, North Dakota has joined a growing list of states revoking Binance US’s license to operate as a money transmitter. The revocation is attributed to the exchange’s failure to meet compliance standards and the ongoing legal troubles associated with its founder, Changpeng Zhao (CZ). This initiative highlights the increasing regulatory pressures on Binance as it faces lawsuits and investigations from several U.S. authorities.
Impact of Legal Troubles on Binance US’s Operations
The North Dakota Department of Financial Institutions highlighted that the recent legal developments involving CZ have played a critical role in its decision. CZ admitted to violating anti-money laundering laws, leading to a four-month prison sentence and a $50 million personal fine. Additionally, Binance agreed to a substantial settlement of $4.3 billion with the Securities and Exchange Commission (SEC) following allegations of offering unregistered securities. These legal complications have significantly impacted Binance US’s operational renewal in various states.
State-by-State Breakdown of License Revocations
Several other states have also taken regulatory actions against Binance US. Florida suspended the exchange’s license in November 2023, shortly after CZ’s guilty plea. Alaska refused to renew Binance US’s license in January, followed by North Carolina and Maine in the same month. Further actions were taken by Connecticut, which suspended the license on April 24, and Oregon, which revoked it on April 3. These measures reflect a coordinated effort to address compliance and legal concerns associated with the exchange.
Conclusion
With multiple states revoking or suspending Binance US’s licenses, the regulatory landscape for the exchange remains challenging. The legal issues surrounding its founder, CZ, and the company’s compliance failures are pivotal factors driving these decisions. As regulatory scrutiny intensifies, it is crucial for Binance US to address its compliance gaps and align with regulatory standards to ensure continued operations in the United States. The industry awaits further developments on how Binance US will navigate this increasingly stringent regulatory environment.
