North Dakota’s financial regulatory authority has revoked Binance.US’ money transmission license, aligning with other US states. This move makes North Dakota the seventh state to do so, following Alaska, Florida, Maine, North Carolina, and Oregon. Despite broader regulatory scrutiny facing Binance globally, its US affiliate continued operations.
This week, the state issued an order stating that Binance.US failed to comply with North Dakota regulations. The order also referenced Changpeng Zhao, the subsidiary’s majority owner, who pleaded guilty to US anti-money laundering law violations.
At the time of the press request, Binance.US had not responded to Cryptonews’ i Heightened Regulatory Scrutiny
Changpeng Zhao, despite currently serving a four-month prison term in the US for money laundering offenses, remains a key figure in Binance’s leadership.
Allegations of Regulatory Lapses
Prosecutors criticized Binance for lax security measures, which allegedly facilitated criminal activities. They claimed the exchange allowed transactions involving designated terrorist groups and failed to report transactions related to child sexual abuse materials and ransomware profits.
Legal Developments in Florida
A recent decision by a Florida appeals court overturned the initial block on Binance.US operations in the state, citing insufficient justification by regu Regulatory Action in North Dakota
The North Dakota regulator cited Binance.US’s inadequate permissible investments and anti-money laundering program as grounds for revoking its license under the Money Transmitters Act. The regulator emphasized the necessity of this action to protect citizens from illicit activities and transactions.
This revised version includes more transition words to enhance coherence and readability while addressing the sentence length issue by breaking down longer sentences into shorter, clearer ones.
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