The U.S. Supreme Court on Monday rejected the appeal request from Binance and its former CEO Zhao Changpeng. This request attempted to overturn the lower court's ruling that U.S. securities laws still apply to the exchange even if Binance does not have a physical headquarters.

According to The Block, since 2023, Binance and Zhao Changpeng have been facing legal challenges. The U.S. Securities and Exchange Commission (SEC) accused Binance of illegally providing services to U.S. users at that time. By the end of the same year, the exchange had to pay up to $4.3 billion in fines and forfeitures due to a guilty plea. As the largest cryptocurrency exchange by trading volume globally, Binance's situation in this case has garnered significant attention.

The controversial issue in this case is: 'Does Binance, which has not established a physical headquarters or office, still need to comply with U.S. securities laws for providing services to U.S. users?'

Binance previously requested the U.S. Supreme Court to review the ruling of the U.S. Second Circuit Court of Appeals, which stated that Binance's trading platform still needs to comply with U.S. law regardless of whether it has a physical office. The Second Circuit's ruling indicated that the token purchases made by U.S. investors through Binance occurred within the U.S., and the trading process was completed via servers located in the U.S., thus Binance is obligated to comply with U.S. laws.

Binance and Zhao Changpeng emphasized that this case has global implications and could have far-reaching effects on the digital assets industry, which is worth trillions of dollars. The Supreme Court's ruling may set a precedent for the regulation and legal applicability within the global digital asset market and provide guidance for the future compliance of the cryptocurrency industry.

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