Key Takeaway:
- North Dakota revokes Binance US’s money transmitter license due to compliance issues.
- Changpeng Zhao pleaded guilty to violating U.S. anti-money laundering laws.
- States like Alaska, Florida, Maine, North Carolina, and Oregon have also taken action against Binance’s license.
Binance US License Revocation
Binance US faced license revocation in North Dakota due to non-compliance issues, leading to concerns over legal challenges involving Changpeng Zhao. The North Dakota Department of Financial Institutions stated that Binance US failed to adhere to state laws, resulting in the revocation of its money transmitter license.
Reasons for License Revocation
The decision to withdraw Binance US’s license was primarily based on Zhao’s federal conviction for violating anti-money laundering laws. Additionally, insufficient anti-money laundering programs and lack of transparency and cooperation raised concerns among North Dakota’s financial regulators. This lack of compliance ultimately led to the revocation of the license.
Consequences of License Revocation
Despite Zhao’s guilty plea and the concerns raised by regulators, Binance US faced license revocation in multiple states. The breach of trust and failure to meet regulatory standards played a significant role in the decision to revoke the money transmitter license.
