North Dakota has revoked Binance US’s money transmitter license due to non-compliance with state laws and the legal troubles of its founder, Changpeng Zhao. This decision was announced following Zhao’s guilty plea in April to violating U.S. anti-money laundering laws, which resulted in a four-month prison sentence.
Historically, this marks a significant regulatory action as Florida was the first state not to revoke the license post-conviction, while states like Alaska, Maine, North Carolina, and Oregon have also revoked or refused to renew it. A standout feature of this case is the emphasis on Binance.US’s inadequate anti-money laundering program and lack of transparency, which were critical factors in the decision.
North Dakota’s financial regulators noted Binance.US’s failure to provide necessary compliance documents, further breaching trust and regulatory standards. This move underscores the strategic importance of rigorous compliance in the cryptocurrency industry and sets a precedent for future regulatory actions.
