North Dakota revokes Binance license amidst Zhao prison sentence

Binance US’s money transmission license in North Dakota has been revoked due to non-compliance issues.

North Dakota has chosen to revoke Binance USA’s money transmission license due to compliance issues and legal challenges faced by its founder, Changpeng Zhao.

The North Dakota Department of Financial Institutions announced that Binance USA does not comply with North Dakota laws.

“The Commissioner of the North Dakota Department of Financial Institutions has revoked the money transmission license of BAM Trading Services, Inc., doing business as Binance.US,” the decision said.

In April, Zhao pleaded guilty to violating US anti-money laundering laws and was subsequently sentenced to four months in prison for Binance’s involvement.

Zhao first pleaded guilty in November 2023, making Florida the first state not to revoke BAM’s transmitter license. Other states, including Alaska, Florida, Maine, North Carolina and Oregon, have also revoked or refused to renew the exchange’s license.

Binance sees another cancellation

Many main reasons for the decision were stated in the announcement; Zhao’s crime of violating federal anti-money laundering laws was the key determining factor. Binance and Zhao were federally convicted for operating an unlicensed money transfer business. The decision to withdraw the license also cited Binance.US’s inadequate anti-money laundering program as a contributing factor.

During the investigation, North Dakota’s financial regulators expressed concerns about the company’s lack of transparency and cooperation. They pointed out that Binance.US failed to provide documentation and records for compliance.

Zhao’s lack of cooperation, in addition to his conviction, ultimately led to the decision to revoke the license for violating trust and regulatory standards.