Following the impending launch of Binance US, the leading cryptocurrency exchange has updated its terms of service. Customers from the United States will no longer have access to Binance.com after Sept 12
The exchange, however, is looking to fill that void by launching its regulatory compliant U.S based subsidiary, Binance US after its new partnership with Bam Trading Inc. announced a day earlier.
Why Binance is Blocking U.S Customers
Binance’s decision to shut the doors of Binance.com at U.S customers is linked with the exchange’s ongoing efforts to reach regulatory compliance in any region where it has subsidiaries.
However, the regulatory nature of cryptocurrencies in the U.S as we’ve reported time and again remains uncertain at this point. Reports suggest that the United States Securities and Exchanges Commission (SEC) plans to clamp down on projects that they deem fit as securities, and of course exchanges that allow investors to buy these tokens.
In the past few weeks, we’ve seen some U.S exchanges, notably Bittrex and Poloniex barring U.S customers from accessing these allegedly security-like tokens, fearing the upcoming clash by the SEC.
Now, Binance is taking another route to solve that problem, instead of merely blocking U.S customers.
By launching a U.S subsidiary, the exchange still keeps the faith of its customers while at the same time meeting regulatory compliance by listing only products and services that the country allows.
Such an approach allows Binance to maintain its already established relationship with the more extensive crypto community using Binance.com. The exchange can thus continue offering (any) legally approved tokens and products such as Binance Launchpad which U.S regulators would almost certainly disapprove.
The result would be as Socios.com CEO, Alexander Dreyfus pointed out that
“Binance will not be seen anymore as a ‘tainted’ operator and will become stronger than ever,” since it would remain regulatory compliant both in Malta and the United States.