Binance US Reclaims Florida License After Successful Appeal

Following a positive decision from the Florida First District Court of Appeal, Binance US has successfully reclaimed its money-services business license in the state of Florida. The emergency suspension order issued by the Office of Financial Regulation (OFR) that had previously put a stop to Binance’s activities in the state was reversed by this ruling.

The state law’s use of the word “may” suggests discretionary action rather than a required suspension, thus the court determined that the OFR’s suspension lacked legal justification. This decision requires the OFR to provide more convincing proof and take into account less drastic options before enforcing bans.

The suspension was initially triggered after Binance CEO Changpeng Zhao admitted to violating US Anti-Money Laundering laws last November. However, the court emphasized that immediate compliance with the suspension would require liquidating digital assets held by over 170,000 Florida clients, posing a significant financial risk due to price volatility.

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.”

Wider Impact and Future Operations

Binance’s suspension in Florida was one of the first following Zhao’s guilty plea, leading to similar actions in states like North Carolina, Maine, Alaska, and Oregon. Additionally, operations in Ohio and Georgia remain unresolved, while Binance services are unavailable in New York, Hawaii, Minnesota, Vermont, and Texas.

While the OFR may still appeal the ruling, Binance is now permitted to continue serving its existing Florida customers. However, new user registrations are temporarily on hold.

Binance, established in 2017, is renowned as the world’s largest crypto exchange by daily trading volume. The platform enables users to buy and trade a variety of digital assets, including the widely recognized Binance Coin (BNB).