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Binance.US is dealing with growing problems as more U.S. states have taken away or refused to renew its licenses to operate. This situation is connected to the legal and compliance issues involving the exchange's former CEO, Changpeng Zhao (CZ). 
These setbacks have caused uncertainty among Binance.US users, leading some to withdraw their funds and seek alternatives. The exchange is now under increased scrutiny, and it will need to address these issues quickly to regain trust and continue its operations in the U.S.
<h3 id="span-span-data-font-font-size-style-font-size-16px-north-dakota-revokes-binance-us-license-span-span">North Dakota Revokes Binance.US License</h3>
The latest state to join the growing list is North Dakota. On Monday, the North Dakota Department of Financial Institutions announced that it has revoked the money transmitter license of BAM Trading Services Inc., which operates as Binance.US. The regulator mentioned the company's failure to comply with North Dakota's laws as well as the guilty plea from CZ for breaking U.S. anti-money laundering laws.
<a href="https://www.coingabbar.com/en/crypto-currency-news/federal-judge-sentences-binance-founder-to-jail" title="CZ" class="f-link" rel="noopener noreferrer nofollow">CZ</a>, who held the largest ownership stake and control over Binance.US, was recently sentenced to four months in prison after reaching a settlement with the U.S. Department of Justice (DOJ). As part of the plea agreement, Binance agreed to pay a staggering $4.3 billion in penalties and fines for failing to maintain an effective anti-money laundering program and conducting an unlicensed money-transmitting business.
North Dakota's financial regulator clarified that to lawfully engage in the business of money transmission, which involves receiving money or cryptocurrency to send to a location within or outside the United States on behalf of another person, a license is required under the state's laws.
<h4>Several States Pull Licenses from Binance.US Exchange</h4>
The state has joined the ranks of <a href="https://www.coingabbar.com/en/crypto-currency-news/binance-services-stopped-in-florida-and-alaska" title="Alaska and Florida" class="f-link" rel="noopener noreferrer nofollow">Alaska, Florida</a>, Maine, North Carolina, and Oregon, which have all taken similar actions to revoke or deny the renewal of Binance.US's money transmitter license. Florida was the first to suspend the exchange's license in November last year, shortly after CZ's guilty plea.
In January, Alaska declined to renew Binance.US's license, followed by North Carolina and Maine later that month. Connecticut suspended the exchange's license on April 24, while Oregon revoked it on April 30.
<h4>Binance.US Remains Hopeful in SEC Case</h4>
The growing regulatory pressure on Binance.US comes at a time when the cryptocurrency industry is facing increased attention from regulators across the globe. The exchange is currently engaged in a legal battle with the U.S. Securities and Exchange Commission (SEC), which intensified last year with allegations similar to those faced by other platforms such as Coinbase and Kraken.
Despite the challenges, Binance.US remains optimistic about the outcome of its legal battle with the SEC. Norman Reed, the exchange's CEO and former general counsel, has criticized the SEC for not providing clear guidance on which digital assets are considered securities.
<h4>Compliance Efforts Grow at Binance.US Amid License Revocations</h4>
To address the compliance concerns, Binance.US recently appointed Martin Grant, a former chief compliance and ethics officer at the Federal Reserve Bank of New York, following the resignation of CZ from his role as chair.
As rules around crypto keep changing, the industry is feeling more heat to follow money laundering and financial rules. Binance.US's problems show how important it is to have strong ways to follow these rules and what could go wrong if you don't.
The cancellation of licenses allowing Binance.US to handle money in several states is a big problem for them. It makes it harder for the exchange to do business in those places. We'll have to wait and see how they deal with these issues and what they do to make regulators trust them again and keep working in the US.
Also read - <a href="https://www.coingabbar.com/en/crypto-currency-news/sec-calls-off-the-ethereums-investigation" title="Good News For Ethereum" class="f-link" rel="noopener noreferrer nofollow">Good News For Ethereum, SEC Ends The Investigation</a>

Binance.US Struggles with License Revocations and Compliance

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