Binance Wins Appeal in Florida, Regains Ability to Operate in the State

Binance, one of the world’s largest cryptocurrency exchanges, has scored a significant legal victory in the U.S. after a Florida appeals court ruled in its favor, reversing the emergency suspension of its money transmitter license in the state. The decision represents a rare win for a major crypto firm in a landscape often dominated by regulatory crackdowns.

Emergency Suspension Reversed After Court Ruling

The issue began in November 2023, shortly after Changpeng Zhao, Binance’s founder and then-CEO, pleaded guilty to violating U.S. anti-money laundering laws. In response, Florida’s Office of Financial Regulation (OFR) issued an emergency order suspending Binance’s license to operate within the state.

At the time, Florida regulators expressed concerns about the company’s legal standing and whether it could continue operating without risk to users. However, Binance’s U.S. affiliate, Binance.US, fought back in court, arguing that the suspension was not only abrupt and excessive but also lacking in proper justification.

On May 22, 2024, the First District Court of Appeal sided with Binance. The court found that the OFR had failed to provide a solid legal basis for the emergency suspension and had not demonstrated why a less disruptive measure couldn’t have been used instead.

Court Highlights Potential Harm to Users

One of the strongest arguments made in court, and ultimately acknowledged by the judges,  was that the emergency suspension could have inflicted real financial harm on tens of thousands of Florida residents.

According to the ruling, over 170,000 Binance.US customers in Florida could have been forced to liquidate their crypto assets, potentially locking in losses due to unfavorable market conditions or triggering unnecessary tax liabilities. The court concluded that the OFR did not adequately weigh these risks when issuing its emergency order.

“The lack of explanation and consideration for less severe actions shows the decision was rushed,” the court noted in its opinion. This suggests that regulators need to apply more nuanced and well-supported approaches when dealing with complex crypto firms.

What This Means for Binance and Crypto Regulation

The ruling is not only a win for Binance but also a potential blueprint for how crypto firms might defend themselves against what they view as overreaching or arbitrary regulatory actions.

Binance.US is now free to resume operations in Florida, and while that marks a big step forward, it doesn’t eliminate the company’s challenges across the country. The exchange still faces license issues or onboarding restrictions in several other states, including Alaska, North Carolina, Georgia, and Washington.

However, the Florida court’s decision could influence how other regulators act in the future, encouraging them to take more balanced, transparent, and legally justified steps before halting services.

A Rare Win in a Tough Regulatory Climate

Crypto exchanges have often found themselves on the defensive in recent years, with U.S. regulators tightening their grip on digital asset platforms. Binance itself has been under global scrutiny, and while it still has a long road ahead, this win provides some momentum.

For users and crypto enthusiasts, the ruling is a sign that due process still applies, even in the fast-paced and sometimes murky world of crypto regulation.