Florida's 1st District Court of Appeal agreed with Binance.US, which sought to lift the statewide ban that had been in effect since November 2023.

The state ban on Binance.US was imposed by the Florida Office of Financial Regulation (OFR). This comes shortly after Binance Holdings CEO Changpeng Zhao pleaded guilty to failing to comply with Anti-Money Laundering (AML) and Bank Secrecy Act (BSA) regulations. The crypto exchange challenged the decision of the Florida regulator. The company's management said that due to the regulator's order, more than 170,000 Florida traders could suffer financial losses.

The Florida Court of Appeals supported Binance, ruling that the agreement with the US authorities should not be considered grounds for blocking the exchange's activities.

The court explained: OFR failed to adequately justify why Zhao's actions should constitute a valid reason for the emergency suspension of Binance.US' license in Florida and how they threaten public safety plus the material well-being of the people. OFR's order to emergency suspend Binance's money services license contains a significant procedural error and an erroneous interpretation of State Statutes, the appeal decided.

“The forced and untimely sale of digital assets by Florida customers risks financial harm due to fluctuations in the value of crypto assets. Users will be forced to sell them at a price higher than cost, which will entail unplanned and extensive tax liabilities,” the court explained.

This decision may become a precedent. For example, Alaska's financial regulator refused to renew Binance.US's license to operate in the state.

At the end of April, Changpeng Zhao was sentenced to four months in prison in Seattle Federal Court. The former Binance executive hinted that he will spend this time writing a book.