Corporate and individual customers will not be getting service from Binance, from September on. That’s what the trading and exchange platform announced today.
If you have some degree of expertise, you’ll be able to use a VPN so that your account, which will have to be unverified, can remain active and work around the restrictions. It’s not optimal, but it’s possible.
Binance is one of the world’s most important cryptocurrency trading platforms, based out of China. Its total traffic from the U.S. is about 15%, so it’s not determinant, but it’s still quite relevant. But that 15% will be left without service soon on Binance.com, the company’s primary platform.
The terms of use
This comes out of Binance’s updated “Terms of use,” which nobody reads for the most part. Well, this time it turns out that you should read them in full. The new terms state that the crypto exchange “is unable to provide services to any U.S. person.” After September 12th, users could still access their digital wallets and their funds, but trade won’t be a possibility for them then.
Binance’s total traffic comes from the U.S. at a rate of 15%. It’s not that high if you take into account that it used to be 30% only 18 months ago.
The platform trades in over than 150 digital assets, and it’s one of the most critical services in the world.
Other options
It doesn’t mean that everything is finished for US-based customers. They can remain unverified and still withdraw as much as two BTC without submitting to the verification process. This would need users to have a VPN so that they can work around the verification, but it can be done. The new policy says that:
“some users may be required to furnish evidence showing that their account registrations are consistent with Binance’s Terms of Use.” If you break the rule, you can’t use the platform anymore.
American Binance users will surely look for alternatives so that they can redeem their digital wealth. The company knows that, and it’s offering an option. There will be a different fiat-to-crypto service so that U.S. customers can still be served with full compliance with their domestic law.
Binance’s CEO, Mr. Changpeng Zhao, remains optimistic about all of this. He used his Twitter account to say:
There will be a few restrictions on https://t.co/9rMMAmtCxH accompanying this. But some short term pains may be necessary for long term gains. And we always work hard to turn every short term pain into a long term gain. https://t.co/gl1M1cwPYB
— CZ Binance 🔶🔶🔶 (@cz_binance) June 14, 2019
Binance is not so innovative on this. Binance DEX affirmed it would be blocking U.S. customers, and users from other 28 countries, during next month. Bittrex did the same for 32 different countries after Poloniex did its thing as well.
So Binance is merely following BitMex and Bitfinex because the regulations just look bad for them. Then Huobi started to do the same, and Binance went along because they’re partners.
Binance will continue to offer trades in cryptocurrencies. Uganda, Jersey, and Singapore are in the works. Binance will cover every continent because they’re global. Yes, it will be all about Ethereum and Bitcoin, but they will remain around.
Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.
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