Various US States Revokes Money Transaction Permits In Binance, Here's Why!

JAKARTA - Binance.US, faces heavy pressure from various states in the United States. North Dakota, Alaska, Florida, Maine, North Carolina, and Oregon have revoked or refused to renew the company's money transaction permits. This move was taken due to concerns about compliance and legal issues involving former Binance CEO Changpeng Zhao (CZ).

The North Dakota financial regulator recently announced the revocation of the Binance.US money transaction license. In a statement, the regulator stated that BAM Trading Services, Inc., the company operating Binance.US, failed to comply with the North Dakota law. In addition, Changpeng Zhao, owner of the majority and controlling company, pleaded guilty to a violation of US anti-money laundering laws.

Zhao is currently serving a four-month prison sentence as part of a settlement agreement with the US Department of Justice (DOJ). In the agreement, Binance was required to pay a fine of 4.3 billion US Dollars (Rp70.3 trillion). Initially, DOJ applied for a three-year prison sentence for Zhao.

Regulation Enforcement In Various States

North Dakota explained that the money transmission activity involves receiving money or cryptocurrencies to be sent to locations inside or outside the United States on behalf of others. To run a legal money transmission business, one must obtain a permit as stipulated in the Dakota North Century Code Chapter 13-09.1.

Another state also took similar action against Binance.US. Florida suspended Binance.US' license in November last year, immediately after Zhao admitted to violating US anti-money laundering laws. In early January, Alaska decided not to renew the crypto exchange permit. Then, North Carolina suspended the permit on January 23, followed by Maine on January 29. Connecticut suspended Binance.US' clearance on April 24, and Oregon officially revoked it on April 30.

Quoted from CCN, according to an announcement from the Department of the North Dakota Financial Institution, 'North Dakota joins Alaska, Florida, Maine, North Carolina, and Oregon which has taken similar action to revoke or deny the renewal of the BAM Trading Services Money Transmission Permit.'