The state appeal court advised the Florida Office of Financial Regulation that just because they have the ability to do something doesn’t necessarily mean it’s advisable to do so.
Binance.US has secured a legal win in its appeal against 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 grounds.
The suspension of Binance.US’s Florida license stemmed from Binance CEO Changpeng Zhao’s guilty plea in federal court for violating U.S. Anti-Money Laundering laws on November 21, 2023.
In its decision, the appeals court referenced state law indicating that the OFR “may” suspend a money-services business license “by any procedure that is fair under the circumstances,” provided that the agency presents reasons demonstrating the fairness of its decision. Additionally, the agency failed to explore less severe alternatives to suspension.
Additionally, the court determined that the suspension of Binance.US’s license posed a threat to over 170,000 state account holders, potentially exposing them to substantial financial losses and tax obligations.
A week following Zhao’s plea, the OFR suspended Binance.US’s license, becoming the first of multiple states to take such action. Binance subsequently filed an appeal against the OFR’s decision on March 25; however, this appeal document remains inaccessible to the public. On its website, Binance.US announced that the process of onboarding new users in the state has been temporarily halted.
This year, Binance.US faced suspension or denial of license renewal in several states, including Alaska, Maine, North Carolina, and Oregon. The status of its operations in Georgia and Ohio remains uncertain. Notably, Binance.US never functioned as a cryptocurrency exchange in Hawaii, Minnesota, New York, Texas, and Vermont. The Florida Office of Financial Regulation (OFR) did not provide an immediate response to a request for comment from Cointelegraph regarding the case.
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