Florida State Appeals Court Reverses Binance US Suspension

Florida State Appeals Court Reverses Binance US Suspension

Binance US has been granted permission to continue operations in Florida following a decision by the First District Court of Appeal. The court overturned an emergency order issued by Florida’s Office of Financial Regulation (OFR) that had suspended Binance US’s money transmitter license.

The First District Court of Appeal ruled unanimously in favor of Binance US, stating that the OFR did not follow the correct procedure in halting the exchange’s operations. The emergency order, initially issued by the OFR, cited concerns over money laundering activities but was found to lack sufficient evidence and procedural adherence.

The court determined that the OFR unjustly stopped Binance US operations, failing to provide adequate evidence to support its claims. The regulator had pointed to risks associated with money laundering, especially following charges against former Binance CEO Changpeng Zhao (CZ), who had pleaded guilty to money laundering charges in the US.

Despite these allegations, the district court found that the emergency suspension imposed by the OFR lacked a clear basis. The court also noted that the actions of CZ, which led to his arrest, were cited by the OFR as potentially harmful to public health, safety, and welfare, yet these claims were unsubstantiated.

This ruling marks a significant victory for Binance US, allowing it to resume operations in Florida and signaling a potential shift in the regulatory landscape. However, Binance continues to face legal challenges both in the US and internationally. The company recently faced issues renewing its operation license in Alaska, with regulators citing CZ’s guilty plea as a reason for the denial.

Binance US’s ability to navigate these legal hurdles will be crucial as it seeks to maintain and expand its operations amidst ongoing regulatory scrutiny.

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