Binance To Restrict Platform Services For US Based Individuals: Launch Of Separate US Dedicated Platform

Following the announcement, that popular crypto exchange Binance is launching an exclusive platform for US based individuals, the giant has decided to shut off its current platform’s services for US based individuals and corporate traders.

The exchange has recently updated its terms of service, post their public declaration of the set up of a complete fiat-to-crypto trading platform for US based individuals.

Their announcement reads:

“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 Binance.com.”

The CEO of Binance, Changpeng Zhao (CZ), has tweeted his opinions about this new change in structure:

“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.”

There is an evident loophole with the change in the terms of service. U.S. users can use a virtual private network to circumvent the new restrictions, however, withdrawals for non-verified users are restricted to up to 2 bitcoin (BTC) per 24 hours— worth $16,482 to press time.

If users try to engage in trade above that, they are required to provide evidence that they are complying with the platform’s Terms of Use. This is however not a new policy when it comes to Binance.

Earlier this month, Binance introduced geo-blocking to restrict website access to users in 29 countries, for the decentralized exchange (DEX) that it has developed.

This regional categorization of Binance has been an old policy for the company, which focuses on bridging gaps between communities, while catering to their specific needs. I believe that this country specific policy will definitely improve efficiency of administration and will hopefully bring in new businesses.