The United States has gradually revoked or refused to renew the money transmission licenses of BAM Trading Services Inc., operating under the name Binance US, in multiple states this year. This Monday, North Dakota became the seventh region to join the ban.
North Dakota State announced the revocation of Binance US license
Binance US licenses revoked by multiple states in the United States
After being sued by the SEC, Binance US suffered a severe blow to its business
In November last year, Binance reached a settlement agreement with the U.S. Department of Justice, the Commodity Futures Trading Commission (CFTC), and other institutions, admitting guilt and agreeing to pay a $4.3 billion fine. Founder Zhao Changpeng (CZ) admitted to charges of violating U.S. anti-money laundering laws, resigned as CEO of Binance, and began serving his sentence in a federal prison in California on June 1st.
However, compliance issues regarding Binance.US have not been resolved. Several states in the United States have revoked or refused to renew the money transmission licenses of BAM Trading Services Inc., operating under the name Binance US. North Dakota’s financial institutions on Monday (17) also became the latest region to announce the revocation of Binance US license.
North Dakota’s financial regulatory authorities further stated that:
Prior to this, other states in the United States have taken regulatory actions against Binance US:
In November last year, shortly after CZ admitted to violating U.S. anti-money laundering laws, Florida suspended Binance US’s license.
In early January this year, Alaska refused to renew Binance US’s license.
On January 23rd, North Carolina suspended Binance US’s license.
On January 29th, Maine refused to renew Binance US’s license.
On April 24th, Connecticut suspended Binance US’s license.
On April 30th, Oregon revoked Binance US’s license.
With the announcement of North Dakota on Monday, a total of 7 states have now announced the revocation or suspension of Binance US’s money transmission license. While CZ’s case has concluded for now, the new actions by state regulatory authorities seem to be ongoing, and it remains to be seen whether more states will take similar regulatory actions in the future.
According to previous reports by Doo Wan, in June last year, the SEC sued Binance US, CEO Zhao Changpeng (CZ), Binance Holdings Limited, and its two subsidiaries, BAM Trading Services (BAM Trading) and BAM Management US Holdings Inc. The defendants were charged with violating U.S. securities trading rules and mishandling customer funds.
Subsequently, Binance US faced a series of increasingly severe legal and operational challenges. First, the SEC requested court approval to freeze the assets of its parent companies, BAM Trading and BAM Management. Furthermore, due to the termination of cooperation by multiple banking partners, Binance US was forced to stop supporting USD deposits and withdrawals.
According to Fortune magazine’s report in early March this year, Binance US’s Chief Operating Officer Christopher Blodgett testified in December last year that due to the SEC’s actions, the company has been forced to lay off more than 200 employees since June, two-thirds of its workforce. Blodgett also stated in his testimony that after the SEC sought to freeze assets, Binance US’s platform revenue dropped by 75%:
