North Dakota Bans Binance Operations

The financial regulatory body of North Dakota has withdrawn Binance, following the lead of other U.S. states. U.S. money transmission authorization.

It is the seventh state in the nation to achieve this feat, following Alaska, Florida, Maine, North Carolina, and Oregon. The domestic affiliate of Binance continued to operate within the country even though the broader exchange was under regulatory scrutiny from the U.S. government.

This week, the state issued an order asserting that the U.S. subsidiary failed to comply with North Dakota regulations. It also cited Changpeng Zhao, the subsidiary’s majority beneficial proprietor, who pleaded guilty to charges related to U.S. anti-money laundering law violations.

Prosecutors Target Binance for Alleged Security Lapses and Criminal Ties

Zhao is currently incarcerated in the United States for four months after pleading guilty to money laundering offenses last year. He remains the primary shareholder of Binance despite his incarceration.

Enforcement was initiated in response to Binance’s criticism for its inadequate security protocols, which rendered it an ideal location for criminals. According to the prosecution, this absence of supervision enabled numerous suspicious transactions to fall through the cracks. According to the prosecutors, this may have implicated designated terrorist organizations.

The exchange was also accused of failing to report transactions that pertain to child sexual abuse materials. Additionally, it is purported to have received a substantial portion of the proceeds generated by ransomware. Binance consented to a $4.32 billion penalty as part of a settlement. Zhao personally paid a $50 million criminal sanction and an additional $50 million to the U.S. Commodity Futures Trading Commission.

Florida Appeals Court Overturns Block on Binance US Operations

Binance.The U.S. violated the Money Transmitters Act by failing to maintain an effective anti-money laundering program and adequate permissible investments, per the North Dakota regulator.

The regulator argued that the license’s revocation was necessary and justified to protect citizens from illicit activities, practices, or transactions.

In May, a state appeals court ruled that Florida regulators had unjustly prohibited Binance from operating. The court determined that the regulators’ actions against the company were unjustified.