June 14, 2019, | AtoZMarkets – BAM Trading Services has partnered with a global leading crypto exchange Binance to launch Binance division, for the USA citizens, Binance.US. What to expect on the crypto trading market after Binance opens US branch?
Binance on the crypto community’s radar
The global crypto trading platform Binance has been in the center of the crypto community’s attention in recent days. The wave of awareness from the crypto traders had risen, when the leading crypto exchange announced that it will stop serving US individual and corporate customers on Binance.com in September 2019.
Binance’s announcement came just a few weeks after, when a non-custodial exchange Binance DEX, stated that it will start geo-blocking 29 countries, and the USA among them from July 1, 2019.
According to the different media resources, Binance.com monthly traffic coming from the U.S. customers used to be around 20-30% of all trades. By this moment, those numbers have halved since early 2018.
When the announcement came from Binance DEX, crypto traders suggested, that the main reason behind the company’s decision was SEC charging the founder of decentralized exchange EtherDelta with operating an unregistered securities exchange in November last year.
The tougher rules for digital asset operators are making exchanges reshape their strategy on the US market. It is worth to mention, that before Binance’s decision the same approach toward US crypto traders was taken by Poloniex, Bittrex, and Gate.io.
The crypto trading platforms are seemingly following the new Financial Action Task Forse (FATF) policies, decided to restrict US-based buyers from certain types of coins and tokens
Binance opens US branch; a new challenge for Coinbase?
While speaking about the partnership, Changpeng Zhao, Binance CEO expressed the company’s excitement, of the final launch of Binance.US. Zhao added, that the new collaboration will “bring the security, speed, and liquidity of Binance.com to North America. “
“Binance.US will be led by our local partner, BAM and will serve the U.S. market in full regulatory compliance,” the Binance CEO concluded.
Binance and BAM Trading Services partnership recently got the approval for its FinCEN, on June 11. Although no specific date was given, Binance.US is expected to be launched very soon.
It is worth to mention, that after Binance opens US branch it might start competing for a market share with Coinbase. This crypto trading platform is the only other exchange with a similar track record of success with over $500 million in revenue. Coinbase is the most popular crypto asset exchange for the U.S. market and has thrived over the years. However, the Binance CEO Changpeng Zhao assured, that there enough room for every organization in crypto space to grow together.
Binance opens US branch in collaboration with a mysterious partner.
By the moment there is not much known about the new crypto exchange’s partner. According to the different media resources, BAM Trading Services is registered as a service provider with the Financial Crimes Enforcement Network (FinCEN) regulator. An address from San Francisco California is specified at registration.
BAM Trading Services mailing address on the FinCEN registration is c/o Koi. Koi Trading Compliance in its turn is part of ‘over-the-counter (OTC) dealer Koi Trading a trading startup based in San Francisco. Notable, that on January 24 Binance Labs invested in Koi Trading $ 3 million.
BAM Trading Services blog post in the Medium platform reads that Binance.US “would be a secure and reliable crypto trading platform for users in the United States.” It further explains that Binance.US platform will be built on the cutting-edge matching engine and wallet technologies licensed from Binance.
Please share your thoughts with us in the comment box below.