Binance.US is struggling! Seven U.S. states have revoked Binance's U.S. funds transmission license

This site (120Btc.coM): Binance reached a settlement agreement with the U.S. Department of Justice, the Commodity Futures Trading Commission (CFTC) and other agencies in November last year, pleading guilty and agreeing to pay 4.3 billion The founder, Changpeng Zhao (CZ), pleaded guilty to violating U.S. anti-money laundering laws and other charges, resigned as CEO of Binance, and began serving his sentence in a federal prison in California on June 1.

North Dakota announced the revocation of the BinanceUS license

However, the compliance issues against Binance.US have not yet come to an end. Many states in the United States have successively revoked or refused to renew Binance US this year. Fund transmission license for BAM Trading Services Inc. operating under the name. North Dakota Financial Institutions also became the latest region to announce the revocation of Binance US’s license on Monday (17): the commissioner found that BAM Trading Services, Inc. failed to comply with North Dakota law. In addition, major shareholder and controller Zhao Changpeng has pleaded guilty to felony charges of violating U.S. anti-money laundering laws. North Dakota joins Alaska, Florida, Maine, North Carolina and Oregon in taking similar action to revoke or deny renewal of BAM Trading Services’ money transmission license.

North Dakota financial regulators further stated: Fund transmission activities include receiving funds or cryptocurrency on behalf of another person and sending it to a location within or outside the United States. To legally engage in a money transfer business, a license is required under Chapter 13-09.1 of the North Dakota Century Code.

Binance US has its license revoked by many states in the United States

Prior to this, other states in the United States also took regulatory actions against BinanceUS:

• Last November In March, the state of Florida suspended Binance US’s license, shortly after CZ admitted to violating U.S. anti-money laundering laws.

• In early January this year, Alaska refused to renew Binance US’s license

• On January 23, North Carolina suspended Binance US’s license License

• On January 29, Maine refused to renew Binance US’s license

• On April 24, Connecticut State suspends Binance US’s license

• On April 30, the state of Oregon revoked Binance US’s license.

Including North Dakota’s announcement on Monday, a total of seven states have announced the revocation or suspension of Binance US’s fund transmission license. Although CZ’s case has now come to an end, new measures by state regulators seem to be still in progress. Whether more states will take similar regulatory actions in the future remains to be seen.

After Binance US was sued by the SEC, the company’s business suffered a heavy setback

According to previous reports, the SEC sued Binance US (Binance.US), CEO Changpeng Zhao (CZ) and Binance’s parent company (Binance Holdings Limited) and its two subsidiaries, BAM Trading Services (BAM Trading) and BAM Management US Holdings Inc. (BAM Management), accused the defendants of violating U.S. securities trading rules and improperly handling customer funds.

After this, Binance US faced a series of increasingly severe legal and operational challenges. First, the SEC asked the court to approve the freezing of the assets of its parent companies BAM Trading and BAM Management. Furthermore, Binance US was forced to stop supporting USD deposits and withdrawals due to the severing of cooperation relationships with multiple banking partners.

According to a report by Fortune magazine in early March this year, Binance US Chief Operating Officer Christopher Blodgett stated in his testimony in December last year that the company had been forced to lay off more than 200 employees since June due to SEC actions. employees, that is, two-thirds of the employees. And Blodgett stated in his testimony that Binance US’ platform revenue fell by 75% after the SEC sought to freeze assets: Our trading volume and business in general have collapsed.

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