North Dakota authorities revoke Binance crypto exchange's permit to operate
Date: 2024-06-20 Author: Oliver Abernathy Categories: IN WORLD
On June 4, North Dakota's financial regulator announced that Binance.US no longer qualifies for digital asset and fiat currency transactions in the state. The regulator believes that revoking the license of Binance.US is necessary to protect local residents from potentially harmful financial transactions.
Network restrictions and previous measures
North Dakota became the seventh state to revoke Binance.US's operating permit. Earlier, in November last year, Florida authorities were the first to revoke the license of Binance.US. This happened shortly after Binance settled claims from the US Department of Justice, agreeing to pay a fine of $4.3 billion. At the same time, the exchange's co-founder Changpeng Zhao left his post as CEO.
Consequences of license revocation
After the license was revoked in Florida, similar measures were taken by authorities in Alaska, Maine, North Carolina and Oregon. In 2024, North Carolina and Maine joined these states. In response to these actions, Binance.US has independently suspended new user registrations in Connecticut, Georgia, Ohio, Minnesota and Washington. The exchange also failed to obtain licenses to operate in New York, Texas, Vermont and Hawaii.
Control and management issues
Although Binance.US technically operates separately from its international parent company Binance.com, US authorities believe that the American division is fully controlled by the Seychelles-registered parent company. Binance.US uses the Binance.com name, logos and licenses, as well as transaction software.
Employee layoffs and lawsuits
In March, Binance.US management laid off 75% of the company's employees. This was the result of a lawsuit by the US Securities and Exchange Commission (SEC), accusing Binance.US of digital asset fraud.
Thus, the ongoing license revocation efforts and lawsuits against Binance.US cast doubt on the future of the US crypto exchange. The company faces many regulatory obstacles that could significantly limit its activities in the US market.
