Court Ruling Favors Binance.US in Florida Regulator Dispute

The First District Court has delivered a significant victory to Binance.US after ruling that Florida regulators did not follow proper procedures in blocking the crypto exchange. The court quashed an Emergency Suspension Order issued by the State of Florida’s Office of Financial Regulation against BAM Trading Services, Inc., which operates as Binance.US.

The suspension of Binance.US’s license came after federal plea agreements involving Changpeng Zhao, the former CEO of Binance Holdings Limited. The regulator cited Zhao’s criminal charges and his role as a “Controlling Shareholder” and indirect owner of Binance.US as reasons for the emergency suspension, claiming that his actions posed an immediate danger to public health, safety, and welfare.

However, the court found that the emergency suspension order was a drastic measure that was not adequately justified. According to Section 120.60(6), the authorities were required to provide specific reasons for their actions and consider less drastic alternatives. The court also noted the potential impact on the 170,000 Binance.US account holders in Florida, who could face financial losses due to enforced liquidation of their digital assets.

This ruling emphasizes the importance of procedural fairness in regulatory measures, especially in the rapidly evolving world of digital assets and cryptocurrencies. It is hoped that this decision will serve as a guideline for regulators to avoid hastily imposing unjustified bans based solely on legal conflicts involving disputing parties. Binance.US can now continue its operations while ensuring regulatory compliance, thanks to the court’s ruling.