binance Binance Wins Crucial Appeal In The United States

The Binance cryptocurrency exchange has won a significant appeal in the United States. A circuit court in Florida has overturned the suspension of Binance's business license for financial services in the state. This is a major regulatory victory for Binance.US, allowing it to continue operating on one of the largest cryptocurrency markets in the world.

The court ruled that the Florida Office of Financial Regulation (OFR) did not have sufficient legal justification for the extraordinary suspension of Binance's license. The OFR had suspended the license in response to a confession by Binance's CEO, Changpeng Zhao, to violating American anti-money laundering laws in November 2023.

The appeals court cited state law, which states that the OFR "may" suspend a license for financial services "in any manner deemed fair under the circumstances" if the agency presents grounds justifying its decision. The court concluded that the OFR did not provide adequate justification for the suspension and that the use of the word "may" in the statute implies freedom of judgment rather than an obligation.

The court also found that suspending Binance's license would have caused significant financial losses and tax obligations for over 170,000 account holders in Florida.

"To comply with the suspension, each client would need to liquidate their digital assets, which would result in financial losses due to fluctuations in digital asset prices," the court said.

The decision is subject to further appeal by the OFR. In the meantime, Binance.US has temporarily suspended new user registration on Florida.

However, this is not the end of Binance's problems in the US. The exchange is also facing suspension or denial of its license renewal in several other states, including Alaska, Maine, North Carolina, and Oregon. The status of its license remains unclear in Georgia and Ohio.