Industry Leader Bars U.S. Traders Amid Unclear Regulation
inance has long been one of the world's leading cryptocurrency exchanges since its launch in 2017. It is currently the #1 exchange by adjusted volume, followed by OKeX & HitBTC but it may not hold on to that title for much longer. In a shocking announcement to many, Binance closed its doors to all U.S. cryptocurrency traders.
CZ, Binance's CEO retweeted the statement over the weekend.
As per the official announcement:
"As part of our continuing compliance efforts, Binance constantly reviews user accounts to improve our platform security and to comply with global compliance requirements.
In conjunction with the barring of U.S. traders, Binance took the opportunity to announce the launch of Binance USA. They have partnered BAM Trading Services Inc which recently got approved by the US regulator FinCEN to make it possible. This partnership will give Binance the regulatory framework necessary to operate in the legally in the US amid growing regulations.
It is important to note that Binance was very popular amongst U.S. traders and previously only restricted 6 states out of 50.
It is easy to speculate that Binance USA might not offer the full list of assets that Binance usually offers. This is due to strict U.S. laws and regulations, which might regard some cryptocurrencies as assets.
Binance Coin Blowback
Not surprisingly, Binance's native exchange coin, BNB took a bit of a hit following the news. It dropped from $35 to $30 sparking allegations on Twitter that Binance's team conducted a precoordinated sell-off. CZ, a Twitter veteran and possibly addict immediately responded.
It seems for now that Binance coin is in recovery with its price at $33 and Binance USA will launch sometime in the near future. We and many US traders are anticipating its launch.
Written by Jonathan Ganor
Writer & cryptocurrency aficionado