As a crypto investor with several years of experience, I’m closely monitoring the recent developments regarding Binance.US and its regulatory issues in various states across the country. The latest revocation of its money transmitter license in North Dakota is a concerning sign, especially considering the growing trend of similar actions taken by other states.
As a researcher, I’ve come across the news that North Dakota is the latest US state to revoke Binance.US’s money transmitter license. This makes it the seventh state to take such action. On June 17, 2024, the North Dakota Department of Financial Institutions (DFI) announced that BAM Trading Services, which operates as Binance.US, had not complied with the state’s money transmitter laws. This decision underscores the increasing regulatory scrutiny being directed at Binance.US across the country.
Binance.US Failure to Meet Compliance Standards
DFI Commissioner Lise Kruse announced that Binance.US failed to satisfy the conditions required to maintain its license due to several reasons. A major contributing factor was the federal conviction of both Binance and its founder, Changpeng Zhao, for operating an unregistered money-transmitting business. Zhao’s felony charge for breaking federal anti-money laundering laws significantly influenced this outcome.
The Commissioner has determined that Binance.US longer meets the qualifications or fulfills the necessary conditions for obtaining a new money transmitter license, according to the order. Binance.US has until July 17, 2024, to challenge this decision. If no appeal is filed, the revocation will be enforced straight away.
North Dakota has become the latest state to take action against Binance.US, joining others such as Alaska, Florida, Maine, North Carolina, and Oregon, which have either rescinded or declined to renew the company’s money transmission licenses. Florida was the trailblazer in November 2023, following a guilty plea from Binance.US CEO Changpeng Zhao. North Carolina and Maine made their moves in January 2024.
Despite the revocations, Binance.US has yet to obtain licenses in states such as New York, Texas, Vermont, and Hawaii. Furthermore, new user registration is currently suspended in Connecticut, Georgia, Ohio, Minnesota, and Washington state, as indicated on the Binance.US website.
Impact on Binance.US Operations
The rising number of US states taking away or refusing licenses from Binance.US signifies a more stringent regulatory climate for cryptocurrency exchanges in the country. This occurs as crypto firms face heightened scrutiny, particularly with respect to adherence to anti-money laundering regulations and other financial legislation.
The operational capabilities of Binance.US within the United States are facing growing limitations, potentially affecting its user base and market functions. Compliance with regulatory requirements will be pivotal in shaping Binance.US’s future in the American market.
The regulatory actions against Binance.US are indicative of a wider movement towards heightened scrutiny in the cryptocurrency market. This trend intends to ensure that trading platforms conform to rigorous legal requirements. With more states jumping on board, the crypto exchange landscape in the US undergoes significant transformation, emphasizing the significance of adherence to regulations and transparency within the sector.
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2024-06-19 11:57