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Binance blocks US based crypto traders

Maya Mandz | Jun. 14, 2019
Binance blocks US based crypto traders

June 14, 2019, | AtoZMarkets - The global crypto exchange Binance announced that it will stop serving US individual and corporate customers on Binance.com in September 2019.

US Binance clients are prohibited from trading since September

Notable, that Binance’s announcement comes just a few weeks after, the similar message from a non-custodial exchange Binance DEX, launched in April 2019. The company’s announcement states, that it will start geo-blocking 29 countries, and the USA among them from July 1, 2019. The company addressed its clients, by saying that it will no longer be available for users with IP addresses from the listed countries to trade and access wallets through binance.org. The community suggested, that the main reason behind Binance DEX initiative was SEC charging the founder of decentralized exchange EtherDelta with operating an unregistered securities exchange in November last year.

It is worth to mention, that Binance can only block access to the Binance.org or any other Binance website via geo-blocking. However, Binance blockchain cannot be blocked.

Alternatives for Binance US clients 

The crypto community suggests that in non-verified U.S. customers will still be able to bypass the restrictions and trade on Binance.com or Binance DEX using a VPN  or by using one of the compatible wallets that already support native trading. In addition, Binance at the moment permits withdrawals of up to 2 BTC ($16,500) without any verification. However, according to the updated policy, “some users may be required to furnish evidence showing that their account registrations are consistent with Binance’s Terms of Use.”

The crypto exchange CEO and founder Changpeng Zhao in his turn offered an optimistic outlook on the upcoming changes in his Twitter.

In addition, Binance has announced recently launching a separate fiat-to-crypto exchange to serve the U.S. market in full regulatory compliance.

US Binance trading brings 20% monthly traffic to Binance

As states the latest update on the Binance official website, after 90 days, effective on 2019/09/12, users who are not in accordance with the exchange’s Terms of Use will no longer be able to trade or deposit on the Binance platform. However, as the announcement says, clients, prohibited from crypto exchange use will continue to have access to their wallets and funds. The full version of prohibitions of use Binance states :

Binance.com monthly traffic coming from the U.S. customers reaches 20%, having halved since early 2018 when was approximately 30%. At the moment Binance offers to the trade of more than 150 different cryptocurrencies. The company has already launched fiat-to-crypto exchanges in Uganda, Singapore, and Jersey, all of which only supports trading of bitcoin, either, and BNB.

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