Binance.US successfully contested the suspension of its money-services business license in Florida. The Florida First District Court of Appeal decided that the state Office of Financial Regulation (OFR) had no legal basis for the immediate suspension.
On November 21, 2023, Binance CEO Changpeng Zhao admitted to violating US anti-money laundering laws, which precipitated the suspension.
The court emphasized that the OFR's usage of "may" in the Act implies an option, not a mandate, needing additional rationale for such enforcement operations. It also chastised the OFR for not considering more moderate alternatives before suspending the license.
The suspension put over 170,000 Florida account holders at risk of huge financial losses and tax repercussions, forcing them to liquidate their digital assets amid market volatility.
This court decision is still appealable. Meanwhile, Binance.US halted new user onboarding in Florida and had similar challenges in Alaska, Maine, North Carolina, and Oregon. The company's operational status in Georgia and Ohio is questionable, and it does not operate in Hawaii, Minnesota, New York, Texas, or Vermont.
