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:
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.
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.