Binance Bans US-Based IP Addresses, And the Crypto Community is Very Unhappy

Binance is not having a good year so far, especially as it deals with a multi-million-dollar hacking attack still. However, they are now getting a lot of heat for another decision – banning US customers from trading on Binance DEX.

  • Binance DEX will no longer allow customers to use the exchange with an IP address in the US.
  • The community is unhappy with this decision, despite being told that the ban was the decision of Binance.org.

Binance DEX, the decentralized cryptocurrency exchange, made a major announcement a few days ago that is not sitting very well with the community. The announcement declared that the exchange would not be accessible by users that have an IP addresses in the United States.

Considering the massive role that the US plays in cryptocurrency transactions, the community clearly came back with a lot of criticism, even accusing Binance of not being a truly decentralized platform.

The Binance ecosystem has been criticized before for being more centralized than they let on, depending too much on the personnel in management. However, Binance has consistently stated that their platform for trading is decentralized, stating that any accusation otherwise is entirely baseless. The CEO of Binance, Changpeng Zhao, was asked how a decentralized platform could exclude users from a particular region of the world, to which he stated that the exclusion was due to Binance.org instead of the DEX.

Ever since this announcement came out, there have been crypto proponents and stakeholders alike that have lashed out. In fact, Vitalik Buterin of Ethereum even posted to Twitter about this concern, receiving a reply from Zhao that what is said on Twitter is not always true.

He also posted another tweet that repeats the notion above that the DEX did not block US customers, but Binance.Org did.

Still, the fact remains that the US customers are blocked, and that Binance has a new partnership with a US-based crypto trading platform called BAM Trading.

With the partnership, Binance.US will be launched, which is meant specifically for American customers. Considering the block from the main exchange, this partnership has raised a lot of questions, coming at the same time that a lot of other exchanges have blocked the US, like Huobi Global.

Even with the explanation that Zhao offers, it is clear that the community isn’t exactly convinced that he is being truthful. Last month, after hackers went after the Binance DEX, the platform became the subject of an accusation.

The controversy just got worse after Zhao announced that Binance was a potential reorganization involving the Bitcoin that was lost during this $40 million attack.

The community further stated that they would’ve been persuaded by this idea, eliminating the myths regarding decentralization, if this had been possible.

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Krystle M
Krystle is an American cryptocurrency blogger that wants to see the future of crypto and blockchain technology evolve. She has been writing about cryptocurrency for about a year, with a special interest in blockchain technology and regulatory measures around the world. While away from writing and learning about the changes in the cryptocurrency industry, she likes to indulge in science fiction novels and further her experience in playing both guitar and piano.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

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