Binance, a Malta-based cryptocurrency exchange announced on June 14, 2019, that it will stop serving U.S individual and corporate customers on Binance.com in a bid to meet global compliance requirements and improve the security of the platform. The exchange has also updated its terms of service to include its inability to serve users in the U.S.
Trade and Deposit to be Blocked for U.S. Users of Binance.com
Individual and corporate cryptocurrency traders in the U.S. will be unable to make deposits or trade with Binance.com according to the exchange’s announcement today. The block will commence on September 12, 2019, and at that time, people living in the country will only be able to access their wallet and funds.
According to the exchange, it cannot continue to serve those who have violated its terms of service and cannot prove that they haven’t. Binance’s terms of service were also updated on June 14, 2019, to include the latest change in its “prohibition of use” section. It outrightly stated that:
“Binance is unable to provide services to any U.S. person. Binance maintains the right to select its markets and jurisdictions to operate and may restrict or deny the Services in certain countries at its discretion.
The U.S. Accounts for 15 Percent of Binance.com’s Traffic
The U.S reportedly accounts for 15 percent of Binance’s traffic and it is a decline from the 30 percent recorded in the previous year. Despite the ban, some users who have not gone through the Know Your Customer (KYC) procedure may still be able to use a Virtual Private Network (VPN) to access the full functionality of the exchange.
Nonetheless, it’s worthy to know that Binance is creating another crypto-to-fiat exchange that will be serving U.S citizens. The latter was announced in a blog post on June 14, 2019, that Binance has partnered with BAM Trading Services Inc. to launch a trading service for people in the U.S.