Malta-based cryptocurrency exchange Binance has made the bold decision to restrict US residents from trading on the platform.
The restrictions will come into effect this September. US residents will be unable to trade or make deposits to the exchange after September 12.
Binance has updated its terms and conditions to include the following: “Binance is unable to provide services to any US person.”
The move comes ahead of the upcoming Binance.US launch, which is being powered by a partnership with BAM Trading Services, as outlined in an announcement yesterday.
Over the past year, Binance has launched native exchanges in Uganda, Singapore, and Jersey, with the US being the logical next step from a compliance standpoint.
https://t.co/AZwoBOy3iq will provide secure and reliable cryptocurrency trading to users in the United States.
We look forward to opening registrations soon. 🇺🇸 pic.twitter.com/bQ6sctg3FK
— Binance.US (@BinanceAmerica) June 14, 2019
In response to concerns over whether the restriction of US citizens would impact the trade volume on Binance, the exchange’s CEO, Changpeng ‘CZ’ Zhao, said: “There will be a few restrictions on Binance.com 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.”
Binance also launched a DEX in partnership with Trust Wallet last month, allowing users to trade digital assets without relinquishing control of their capital.
The need for a DEX was reiterated by last month’s malicious hack that saw $40 million siphoned from Binance’s hot wallets. Trading on Binance was temporarily paused as a result.
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