Binance Adds Restrictions for US Users Citing Short Term Pains for Long Term Gains
There a lot of new changes going on at Binance these days as it was announced on June 13, 2019, that Binance will be launching a United States-based division with a Financial Crimes Enforcement Network approved partner. The new platform will target US-based clients and will be called Binance US. The new platform will be dedicated strictly to that region and the management of Binance has already expressed excitement over the new development.
CZ, the CEO of Binance said:
“We are excited to finally launch Binance US and bring the security, speed, and liquidity of Binance.com to North America. Binance US will be led by our local partner BAM and will serve the U.S. market in full regulatory compliance.”
There has also been a word from BAM, the regional partner who stated that
“it is an honor to partner with Binance, leveraging its tier-one security and technology in tandem. We are committed to providing a secure and compliant platform, and beginning the start of a fruitful alliance with Binance.”
This announcement came shortly after the news was broken that Binance will develop its own dollar-backed stablecoin in the near future,
More Changes Ahead
The announcement stated:
Naturally, there has been some criticism about this new development as it is rather inconvenient for certain traders. Binance has come out to say that while this is lightly convenient for some traders it is necessary for the overall growth of the platform.
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
What This Means For the Future
It is also normal that certain users will feel inconvenience due to the change but the management of Binance has stated that the sacrifice will pay off on the long term. Only time will tell just what the new platform will have in terms of features and also how the public will respond to it once it opens.
US customers to be blocked from trading on Binance in 90 days.
Currently, the United States makes up 24% of the user base, outshadowing the next top 5 jurisdictions by a lot.
Expect positions to be exited in preparation.
— Rhythm (@Rhythmtrader) June 14, 2019