North Dakota’s financial regulator has revoked a money transmitter license for Binance’s United States arm, Binance.US — making it the seventh state to do so.

North Dakota Department of Financial Institutions (DFI) Commissioner Lise Kruse said on June 17 that BAM Trading Services — conducting business as Binance.US — failed to comply with the state’s money transmitter laws.

A revocation order notes Binance and founder Changpeng Zhao’s November federal conviction for conspiracy to conduct an unlicensed money-transmitting business and a failure to maintain an effective anti-money laundering program as reasons to pull the license.

Binance’s “majority beneficial owner and control person,” Zhao, was recently convicted on felony charges for violating federal anti-money laundering laws, Kruse added.

“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.

Binance.US may make a request to reverse the order within 30 days, which would cease on July 17, 2024.

The order will become effective if no request is made by then.

North Dakota is the seventh state to revoke or deny the renewal of a money transmission licence requested by BAM Trading Services.

Alaska, Florida, Maine, North Carolina, and Oregon have taken similar actions in recent months.

Florida was the first state to cease Binance.US’ services in November, shortly after Zhao pleaded guilty.

North Carolina and Maine were the next U.S. states to follow suit on Jan. 23 and Jan. 29.

Binance.US never received licenses in New York, Texas, Vermont and Hawaii.

New user onboarding has also temporarily been paused in Connecticut, Georgia, Ohio, Minnesota and Washington state, according to the Binance.US website.

Source