Binance US customers – Cryptocoinzone
Binance US customers seem to have a lot of issues to cover following the platform’s decision to leave the US market. Many misinterpreted the situation thinking that Binance is out of the US for good. The truth is, the trading platform simply had to create a subsidiary website called Binance.US for US clients only due to the domestic legislation. Thus, US traders should not see the move as problematic — if they take measures right now, that is.
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Binance will stop serving US customers within its old website and will open a new online trading center instead. The new exchange will be named as Binance.US and will serve US market only. The reason lies behind the US government’s decision to crack down on platforms that do not have a strong anti-money laundering and terrorist policies.
Crypto trading is becoming noticeable around the globe, which explains the hype behind the Binance US decision. As such, government authorities noticed it as well. Binance’s CEO Changpeng Zhao (popular as CZ), mentioned in 2018 that company plans to open up exchanges across different continents.
The reasoning for leaving the US market is quite simple — government interference and law abidance. US security agencies do not like companies that do not abide by their own laws. It likes even less that taxes can be avoided. However, the most notable reason for the creation of a new US website is to battle money laundering and terrorist activities. Bitcoin (and other coins) are a favorite means of payment for illicit online activities.
So far, Binance offered crypto-to-crypto trading only, with no signs of fiats anywhere. Additionally, a large number of smaller tokens came about as a result of the Binance Labs, which is an incubator for new projects. Teams from around the globe would present the project to Binance and then use the platform to spike activity up within the Binance market. Some of them can be treated as securities, which is an eyesore for US law enforcement.
According to Binance’s latest statement, the platform chose a partner company that will help it create the new US exchange. Binance aims to tackle the US market by providing its license to the local business, BAM Trading Services Inc. Crypto platform aims to bypass the US-China trade war issues, which severely limits Chinese companies while operating within the US. Partnering with the US firm thus liberates the company to freely operate in the US market.
BAM Trading Services, on the other hand, will gain access to the technology and engine products offered by the Binance. Many might see this as a win-win situation for both firms. On one hand, Binance would bypass troublesome procedures of opening a subsidiary business within the US. Likewise, BAM gains access to one of the most powerful trade platforms in the world. New platform Binance.US has been acknowledged by FinCEN registration in June 2019.
Now, we got to the juicy part — what will happen to the Binance’s existing US traders? If you held large coins only (BTC, ETH, and the like), here are steps to ensure you do not lose anything:
1. Withdraw coins to your external wallet
2. Wait out for the Binance.US to open up and transfer coins there
3. Trade.
However, if you own altcoins, the story gets a bit more complicated. Binance already announced that US regulations will hamper smaller cryptos. Since SEC and other governmental bodies frown upon securities that are not exactly securities, altcoins will not be part of the Binance’s portfolio. Additionally, for the time being, Binance Labs will not function for the US exchange.
Thus, traders can repeat step 1 and then transfer coins to other trading platforms that happen to accept alts. Otherwise, you stand to lose them all if altcoins that you have in possession will not be part of the portfolio within Binance.US.
It is evident that Binance US customers are not parting ways. However, the sooner US traders get out of Binance, the better. The company already announced its intentions of building several platforms for different markets. Some reports mentioned earlier this year that US traders will be restricted through geo-blocking AI. Thus, time is getting short for US investors should they wish to keep their coins.
Lastly, Binance and US traders might deepen their relationship through fiats, since they might be on the table. However, no concrete news touched upon it so far and trading pairs with USD still remain shrouded in the cloud of mystery.
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Published at Sat, 10 Aug 2019 09:17:41 +0000
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