North Dakota’s Department of Financial Institutions Commissioner pointed to Binance’s money transmitter and AML convictions to make its case.

North Dakota Revokes Binance.US Money Transmitter License

Key Points:
- Action Taken: North Dakota Department of Financial Institutions (DFI) revoked Binance.US's money transmitter license.
- Date: June 17
- Reason: Non-compliance with state money transmitter laws and federal anti-money laundering regulations.

Reasons for Revocation
1. Federal Conviction: Binance founder Changpeng Zhao's conviction for conspiracy to conduct an unlicensed money-transmitting business.
2. AML Compliance Failures: Failure to maintain an effective anti-money laundering program.
3. License Qualifications: Failure to meet qualifications required for a new money transmitter license.

Commissioner: Lise Kruse

Revocation Order Details
- Document: Order for Revocation and Notice of Right to Request Hearing
- Rights: Binance.US can request a reversal within 30 days (until July 17, 2024).
- Effectiveness: Order becomes effective if no request is made by the deadline.

Other States with Similar Actions
- Total States: North Dakota is the seventh state to revoke or deny renewal.
- States Involved:
- Revoked/Deny Renewal: Alaska, Florida, Maine, North Carolina, Oregon
- Never Licensed: New York, Texas, Vermont, Hawaii
- Temporary Suspension: Connecticut, Georgia, Ohio, Minnesota, Washington (new user onboarding paused)

Florida's Early Action
- Timing: Florida was the first state to revoke services in November, following Zhao's guilty plea.

Related Developments
- Former NY Fed Chief: Joined Binance.US board.

Impact on Binance.US
- Operational Restrictions: Increasingly limited operational capacity in various states.
- Regulatory Scrutiny: Heightened focus on compliance and legal challenges.

Conclusion
The revocation of Binance.US's money transmitter license in North Dakota, along with similar actions by six other states, underscores the ongoing regulatory challenges the company faces in the United States. These actions are primarily driven by compliance failures and legal issues tied to its founder, Changpeng Zhao. Binance.US's ability to operate within the U.S. is significantly impacted, requiring immediate attention to regulatory compliance and legal strategies to address these state-level revocations.