Bitcoin Forum

Binance , the Malta based exchange, announced on Friday that it is barring the US customers from its services :
The sudden shutting down reportedly prompted the US customers to withdraw a large number of altcoins, which included Binance’s very own native token BNB coin.
BNB token dropped 5$ in price following the news , from 36$ to 31$

read more:

https://www.newsbtc.com/2019/06/15/bitcoin-price-jumps-above-8700-following-binance-us-closure/

 

I assume that this move made by Binance is due to the EU government having a tight lease on Malta which is also in relation to them with regards to money laundering and other bs criminal charges they are threatening/warning them. Obviously when the authorities are eyeing them up their main business will be threatened if they don't give in what they want, losing the U.S. market is just one of their options that no money laundering is allowed with the use of their services.

If I was American then I would immediately dump all my BNB and then withdraw funds to a different exchange which is more liberal. Kucoin is from Singapore or perhaps Huobi which is another good exchange and fairly liberal.

following up:

https://cointelegraph.com/news/binance-to-open-us-based-division-with-fincen-approved-partner/amp

Binance is reportedly forming a new trading platform targeting U.S.-based clients dubbed Binance US
Fincen approved partner means that there should not be a problem running it inside the US ... hopefully
now the US customers can sigh with relief (?)

They'll all do the same in the end. It's just too much hassle dealing with Americans.

Anyway this presages a new US focused exchange for Binance customers but they had to partner with an American company to do it. I dunno if they can pool liquidity with the rest of Binance or not.

that's an interesting thought. if this is truly about SEC compliance and removing the ability for USA investors to access ICO/IEO/STO markets deemed securities, then it seems conceivable that liquidity could be pooled on other markets.

then again, i suspect this move is also about broader AML/KYC compliance. they probably can't allow so much unverified trading on binance.com, then pool all that liquidity with their "legit" KYC exchanges. i'm not clear on the specifics, but that doesn't seem kosher to me.

It's completely within the expectations of all users, in my opinion.

This was something that was bound to happen, sooner or later. They simply could not continue to offer non-verified accounts to U.S. users without the SEC focusing on them, and they don't seem to be interested in getting regulated.

I don't think that this is necessarily something that will hurt their long term business, though, because people can still use VPNs to bypass these restrictions. But consider this to be the trend to be the future - traders not willing to verify themselves in the U.S. may need to continue to rely on new exchanges that pop up, as older exchanges face greater tightening of regulations.

this might get them out of dodge with regard to the SEC, but sooner or later, the maltese government will start coming down on them. they'll have no choice. they are part of the EU and are already getting flack from the EU commission (https://bitcointalk.org/index.php?topic=5151138.0) re crypto service AML. the FATF recommendations are probably gonna be the last straw.


you think that'll last forever? i'm not so sure.