Binance, one of the largest crypto exchanges in the world, just announced that it was to start blocking US clients from using its primary platform. All such users will have 90 days to withdraw their funds.
Until this development, US-based users could easily open an account with Binance’s main platform by simply clicking on the “I’m not American” box that appears during the registration process. The exchange will now start blocking these users based on their IP addresses, but not before sending them an email informing them of this action.
Most of these emails read, “We noted your account may be associated with the U.S. due to an IP address you connected from in the past. In-line with regulatory requirements, we are unable to provide services to U.S. citizens or residents”.
The global crypto exchange operates a fully functioning United States exchange branch and is now urging all US customers to move to that one if they wish to continue using Binance. Binance.us was launched in September 2019.
Binance has been hinting for some time now of this move. In fact, it informed of its intentions to block US customers from accessing its main platform all the way back in July 2019. But it is only now that it has enforced these restrictions.
Furthermore, the company has been appearing under the radar of regulators because of “scrutiny avoidance”, including the US’s own CFTC. Recently the French Financial Action Task Force hinted that the firm avoided regulations by shifting its head of operation from place to place.