Breaking: Binance’s License Suspension in Florida Overturned By Court

Varinder Singh
May 22, 2024 Updated October 8, 2024
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Breaking: Binance's License Suspension in Florida Overturned By Court

Highlights

  • Court rules in favor of Binance.US regarding an Emergency Suspension Order by Florida Office of Financial Regulation.
  • The ESO contains a material error in procedure and an erroneous interpretation of Florida Statutes.
  • The order on grounds of plea deals with Binance Holdings and Changpeng Zhao is insufficient.
  • Binance and Binance.US face several challenges in the United States.

The world’s largest crypto exchange Binance’s subsidiary Binance.US has won an appeal against the Emergency Suspension Order (ESO) by Florida state regulator, as per a ruling by the Florida First District Court of Appeal on Wednesday.

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Court Rules in Favor of Binance.US

The First District Court of Appeal for the State of Florida ruled on May 22 that plea deals involving Changpeng Zhao and Binance Holdings for not complying with Anti-Money Laundering (AML) and Bank Secrecy Act are not enough to block Binance.US from operating in the state.

The court said that the Florida Office of Financial Regulation (OFR) never backed up a conclusion of law that Zhao’s conduct constituted grounds for suspending the license of the company’s Florida affiliate Binance.US because Zhao’s conduct allegedly “constituted an immediate danger to the public health, safety, and welfare necessitating an emergency suspension.”

On Nov 29, 2023, OFR issued an emergency suspension order (ESO) to suspend the money-services business license of Binance.US and directed the exchange to cease and desist from engaging in money transmission activity.

“The ESO contains a material error in procedure and an erroneous interpretation of sections 560.114(2) and 120.60(6), Florida Statutes,” as per the court analysis of the order. The ESO has also failed to discuss alternative remedies rather than suspension of the license as it threatens significant financial losses.

Also Read: Binance Delists Major Cryptos, Brace For Price Impact

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Binance Faces Challenges in the US

Binance’s subsidiary Binance.US saw a severe drop in trading volumes amid a number of challenges including money transmitter license suspension and heightened scrutiny from regulators.

The Binance vs SEC lawsuit is in the discovery and deposition phase, with parties resolving disputes related to an earlier consent order by the court.

Recently, a significant development has emerged in favor of Binance as it leverages key details in the United States v. Eisenberg lawsuit to negate the U.S. SEC’s position on stablecoins that BUSD and USDC are unregistered securities. An exhibit in the US DOJ filing states that USDC stablecoin is not a security as it doesn’t pass the Howey test.

“But there is no factual basis for treating USDC as a security or putting that question to the jury. A core component of a security is that the holders of the security “expect profits” from the efforts of others,” as per DOJ filing.

Also Read: Crypto Market Selloff — Here’s Why BTC, ETH, SOL, XRP, Meme Coins Are Falling Suddenly

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Varinder has over 10 years of experience and is known as a seasoned leader for his involvement in the fintech sector. With over 5 years dedicated to blockchain, crypto, and Web3 developments, he has experienced two Bitcoin halving events making him key opinion leader in the space. At CoinGape Media, Varinder leads the editorial decisions, spearheading the news team to cover latest updates, markets trends and developments within the crypto industry. The company was recognized as Best Crypto Media Company 2024 for high impact and quality reporting. Being a Master of Technology degree holder, analytics thinker, technology enthusiast, Varinder has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.