Binance.US Dealt Another Blow: North Dakota Revokes License

Binance.US, the US arm of the world's largest cryptocurrency exchange, is facing a blitz Regulatory audit Which threatens to undermine its grip on the lucrative American market. Increasing license revocations and operational restrictions in many states paint a bleak picture for the future of the exchange.

Money Transfer Problems: Seizure Penalty

The crux of the problem lies in money transfer licenses, which are crucial for exchanges to operate legally. The North Dakota Department of Financial Institutions (DFI) has become the latest state to flag Binance.US, citing non-compliance with local regulations and… Violations of money transfer laws.

This follows similar measures taken by Florida, Alaska, Oregon, Maine and North Carolina. Regulators point to the November 2023 guilty plea of ​​Binance founder Changpeng Zhao to anti-money laundering charges as evidence of the exchange's unsuitability.

Source: State of North Dakota, Department of Financial Institutions

The Commissioner of the Development Fund for Iraq, Liz Cross, stressed the need to protect the public interest. “The Commissioner is of the view that the Respondent does not continue to meet the qualifications or meet the requirements that would apply to an applicant for a new money transmitter licence,” Cross stated. This effectively prevents Binance.US from regaining its license in North Dakota, adding another state to its growing list of “sanction boxes.”

Beyond Borders: The Spread of Global Problems

The situation in the US mirrors the confusion Binance is experiencing globally. Reports of a similar regulatory tussle with the Nigerian government, which led to the arrest of an executive, will likely raise alarm for US regulators, further complicating the Binance.US case.

Total crypto market cap at $2.3 trillion on the daily chart: TradingView.com

There's still a long way to go: Can Binance.US recover?

As restrictions increase, Binance.US is struggling to stay in the game. The exchange is currently unable to onboard new users in several regions and is completely inaccessible in more than 10 states. Binance.US has until July 17, 2024 to appeal the North Dakota decision, but the outlook remains bleak.

Zhao's relatively short prison sentence also indicates a possible course correction within Binance. By prioritizing user safety and adhering to US regulations, Binance.US can regain some lost ground. The future of the stock exchange depends on its ability to right a grave error and implement a winning strategy built on unwavering regulatory compliance.

This critical juncture highlights the ever-evolving regulatory landscape for cryptocurrencies. While the innovative potential of cryptocurrencies is undeniable, exchanges must operate within established frameworks to ensure trust and stability in the market. The outcome of the Binance.US struggle will be closely watched by the entire cryptocurrency industry, and will serve as a cautionary tale for exchanges that prioritize speed over compliance.

Featured image from Migration Navigator, chart from TradingView

Binance.USBlowDakotaDealtLicenseNorthrevokes
Comments (0)
Add Comment