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 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

Barely a day after the initial news of the new platform broke, it has been announced on June 14, 2019, that an update to Binance terms of use has been made which restrict services to United States-based traders. The announcement also gave some details as to how these new changes will be put in place and what time frame it will follow.

The announcement stated:

“After 90 days, effective on 2019/09/12 [12th September 2019], users who are not in accordance with Binance’s Terms of Use will continue to have access to their wallets and funds, but will no longer be able to trade or deposit on”

It has been suggested that this restriction might be able to be bypassed through the use of virtual private networks. However, withdrawals for non-verified users have been caped to two bitcoin per 24 hours and verification requires proof from the user that they are complying with the terms of use of Binance.

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.

What This Means For the Future

Binance is one of the biggest exchanges in the world and so it is not entirely surprising that they would want to dedicate a new platform strictly for the United States uses.

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.

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