Florida State Appeals Court Reverses Binance US Suspension
Binance US has received the green light to continue operations in Florida. The First District Court of Appeal’s decision overturned Florida’s financial regulator’s emergency order. The regulator did not follow due process in halting Binance US operations.
The First District Court of Appeal unanimously ruled in favor of Binance US, allowing it to continue operations in the state. Florida’s Office of Financial Regulation (OFR) had previously blocked Binance from operating in the state.
Also Read: Binance Faces Regulatory Roadblocks in Alaska and Florida
The OFR issued an emergency order to suspend Binance US’s money transmitter license, which hindered its operations in the state of Florida.
Binance US Wins Against Florida’s OFR
The court battle between the Binance Exchange and Florida’s financial regulatory body finally ended after a court ruling. The First District Court of Appeals unanimously ruled against a permanent ban on Binance US operations.
The court found out that the Office of Financial Regulation stopped Binance US operations unjustly. The regulator did not follow the correct procedure before suspending the exchange’s license to operate.
The OFR’s Claims Lacked Clear Basis
In a big win for Binance, the Florida court overturns the suspension order for https://t.co/iaaYi5BXhG, citing procedural errors and lack of evidence. Binance faces challenges in the US with dropping trading volumes and ongoing legal battles.
— Kelvin Zinck (@KelvinZinck) May 22, 2024
According to the ruling court, the OFR did not provide enough evidence to support its legal conclusions. The regulator also cited the risks of money-laundering activities, in line with Changpeng Zhao’s (CZ) charges. The Binance US ban was issued just a few weeks after former Binance CEO, Changpeng Zhao pleaded guilty to US money laundering charges.
Also Read: Binance Appoints New Chief Compliance Officer Amid Regulatory Challenges
The district court of Florida found that the emergency suspension issued by the Office of Financial Regulation lacked a clear basis. The financial regulator also claimed CZ’s actions that led to his arrest may have affected the public’s health, safety, and welfare.
Binance Continues to Deal With Legal Battles
Binance US has faced many regulatory challenges in the US and internationally. It faced challenges with renewing its operation license in Alaska.
The banking division of Alaska rejected Binance’s application to renew its license of operation, citing CZ’s guilty plea. The regulators in the two states, Florida and Alaska, determined that CZ was unfit to lead the company after his guilty plea, leading to Binance’s US suspension.
Cryptopolitan reporting by Collins J. Okoth
