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Binance’s US market venture with a dedicated exchange platform aims to be fully compliant with local laws

Priya

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Binance will be venturing into US markets with a dedicated exchange in order to be fully compliant
Source: Unsplash


Binance, one of the largest cryptocurrency exchanges in the world and spearheaded by Changpeng Zhao, recently announced that it would be no longer provide its services to customers located in the United States. This decision will be made effective in the month of September, following which users will not be able to trade or deposit funds on Binance.com. However, they will be able to make withdrawals.

Along with this announcement, the exchange also stated that it would be launching a separate trading platform for customers in the United States, in partnership with BAM Trading Services Inc. The exchange is anticipated to be launched around the same time as when Binance.com stops providing trading services for US customers on the platform. Further, this exchange will also comply with the rules and regulations set-up in the country.

During an AMA on Periscope, Changpeng Zhao addressed all the queries surrounding the launch of the platform in the United States. CZ started the discussion by briefly explaining the reason they decided to opt Binance.com out of the US market. CZ stated that Binance has always been a fully compliant exchange, emphasizing that they want to be a complaint exchange, everywhere it wants to set-up its base. He stated,

“So far, Binance has not targeted the US market at all, so far we have been focusing exclusively on non-US markets. But, I think the time has come where the markets are mature enough, where we do want to find a way to service the US users.”

Changpeng Zhao claimed that this was the main reason for the partnership with BAM Trading Services. He also stated that they would provide services to these customers in a fully compliant manner, thus the inception of Binance US. This was followed by CZ clearing out some of the rumors with regards to the new US-dedicated exchange platform.

The first concern that was addressed by CZ was about US users’ funds, if KYC is completed in September. CZ stated that the exchange platform had already blocked registration of US customers, adding that they have even taken out the country from the KYC drop-down list. He went on to state,

“You cannot select US for KYC on Binance.com. […] after 90 days people will not be able to trade and they will not be able to deposit, but you can withdraw. Binance will never cease anybody’s funds. So, we will always let people take their funds with them.”

Further, CZ also explained the reason why at times they seize customers funds. He stated that they seize users’ funds only if any law agency has put forth the request. He also stated that during these kind of situations, the exchange not only seizes the users’ funds, but also does not respond to any of the users’ queries. He said,

“So, the chance is, if your funds are frozen and if there is no response, then there’s probably some law enforcement involved. And we are not allowed to say that on a specific case basis but that’s our policy and principle.”





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Priya is a full-time member of the reporting team at AMBCrypto. She is a finance major with one year of writing experience. She has not held any value in Bitcoin or other currencies.

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