Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => Crypto Exchanges => Binance => Topic started by: Fariwala on April 11, 2021, 03:54:51 PM
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US residents still using Binance for trading received a surprise this week. According to The Block, Binance is beginning to block U.S. residents from using their exchange. More than a year after claiming that they would be disallowing US access to the exchange, many are wondering what could prompt such decisive action? How can US traders on the receiving end of these messages continue their crypto related activities?
This isn’t something new. In Mid 2017, Bitfinex decided that it would be removing access to its platform for US clients, citing regulatory uncertainty in the States. 2 years later, Binance appeared to follow suit, announcing in July of 2019 that it would be shutting its digital doors to Americans, promising a replacement, BinanceUS, available within a few months of the September deadline for US users to remove their funds from the platform.
With that plan in place, the actions that Binance ended up taking seem a little conflicting. Initially their terms and conditions were altered to contain wording prohibiting US residents from using the platform. New users were presented with a check box to click asserting that they were not accessing Binance from the US. While Binance never publicly announced their plan for detecting US users, it appears to be widely known that little, if anything, was done to actually prevent Americans from creating new accounts or continue using old ones.
Recently, in New York State, a lawsuit has been filed against forty-two companies and projects globally including Binance, BitMex, Block. One, and the Tron Foundation naming CEOs and other staff.
So much highly publicised legal action was bound to swing the magnifying glass back over Binance, the largest target in crypto. Forbes ran an article earlier this week containing apparent evidence that BinanceUS is a calculated smoke screen; that its primary purpose is to keep regulators occupied with frivolous licensing applications, hearings, and other legal proceedings so that Binance itself could continue business as usual.
More info: https://finance.yahoo.com/news/binance-finally-blocks-united-states-115803718.html