- Binance US wins appeal to reinstate its Florida money-services business license.
- Court ruled OFR lacked legal justification for the emergency suspension order.
- Binance US suspension posed financial risks to over 170,000 Florida account holders.
Binance US has successfully appealed the suspension of its money-services business license in Florida.
The Florida First District Court of Appeal ruled that the emergency suspension order issued by the state Office of Financial Regulation (OFR) lacked sufficient legal justification.
Binance US suspension was unjustified
The suspension, initiated following Binance CEO Changpeng Zhao’s guilty plea on November 21, 2023, to federal charges of violating U.S. Anti-Money Laundering laws, was deemed unjustified by the court.
The court noted that the relevant state law uses the term “may,” indicating discretion rather than a mandatory action, for suspending a license.
In its ruling the court has said that it requires the OFR to provide additional reasoning beyond merely citing the statute and to explore less severe alternatives to outright suspension.
The court’s decision further emphasized that the suspension posed significant financial risks to over 170,000 Florida account holders.
The court stated, “For Petitioner to immediately comply with the ESO, it would be necessary to liquidate the digital asset holdings of every customer [which] threatens financial harm because of digital asset price fluctuations.”
Binance US resumes operations in Florida
The suspension in Florida was one of the first among several states following Zhao’s plea, with similar actions in Alaska, Maine, North Carolina, and Oregon.
In addition, the status of Binance US’s operations remains uncertain in Georgia and Ohio, while it has never operated in Hawaii, Minnesota, New York, Texas, and Vermont.
Although the ruling is subject to appeal, Binance US can resume its operations in Florida for now.
The crypto exchange has, however, temporarily paused new user onboarding in Florida while continuing to serve its existing customers in the state.