A state appeals court ruled Wednesday that Florida regulators acted improperly when they blocked Binance from operating in the state. The decision effectively allows Binance to resume its operations in Florida.
In a unanimous decision on May 22, the First District Court of Appeals overturned the emergency suspension order issued by Florida financial regulators. The court ruled that the regulators failed to justify their decision to block the company from doing business.
Binance. US did not respond to Cryptonews’ request for comment by press time. The emergency order to suspend Binance. US’s money transmitter license was issued in November amid concerns over anti-money laundering violations. This crackdown followed the guilty plea of Binance founder Changpeng Zhao on November 21, 2023, for violating U.S. anti-money laundering laws. Despite the global exchange facing legal action, Binance.US continued operations within the country, reaffirming its commitment to serve its customers.
Binance.US challenged the suspension, arguing that the order was erroneous, misinterpreted local laws, and would cause significant financial harm to its users. The firm highlighted potential losses for over 170,000 Florida accounts and the risks associated with forced asset liquidation.
The judges sided with Binance.US, criticizing the Florida Office of Financial Regulation for not justifying their decision adequately. They highlighted that the forced sale of digital assets could lead to financial harm due to price fluctuations and unplanned tax liabilities for account holders.
The court emphasized that the emergency suspension order did not consider alternative remedies or explain why less severe measures would not suffice to address the alleged emergency.
This ruling marks a significant victory for Binance, enabling it to continue its operations in Florida and reinforcing the need for fair regulatory processes.
