In what could be described as a landmark victory for Binance's subsidiary, Binance.US, the Florida State Court of Appeals has reversed the suspension of the exchange's money transmitter license in the state.
The court verdict implies that Binance.US will resume operations in the American state, having won the appeal against the Emergency Suspension Order (ESO) filed by the state's Office of Financial Regulations (OFR).
Genesis Of Binance.US Regulatory Woes In The Florida State
Binance.US suspension in the American state followed Changpeng Zhao, Binance's former Chief Executive Officer (CEO) admission of guilt to charges revolving around violation of Anti-Money Laundering (AML) laws in November 2023.
Barely a week after the former Binance CEO pleaded guilty to violating the AML guidelines, the Florida authorities ordered the suspension of the Binance.US license via the ESO, implying that their action most probably emanated from the exchange's previous CEO's guilt admission.
Financial Harm Concerns Raised, As The Court Rules In Binance's Favour
During the court hearing procedures, Binance.US presented its arguments, claiming that the Florida authorities' order grossly stemmed from errors arising from the misinterpretation of local laws, adding that the regulatory bodies' decision would negatively impact investors' finances.
Having listened to both parties present their arguments and other concerns, the court gave its verdict, favoring the trading platform. According to the judges, the ESO failed to justify that the reasons behind their decision to suspend the exchange were fair.
In addition, the court noted that the ESO did not present alternative remedies nor validated why a less strict restriction would not be substantial to address the situation.
Intriguingly, the judges also bought into Binance.US's claims of the financial harm that could emanate from the suspension decision. A verdict document from the court read in parts, “For Petitioner to immediately comply with the ESO, it would be necessary to liquidate the digital asset holdings of every customer. A forced and untimely sale of Florida customers’ digital assets threatens financial harm because of digital asset price fluctuations. In addition, an account holder who is forced to sell a digital asset at a price higher than a cost basis would incur unplanned and extensive tax liabilities.”
