Bitcoin Forum

Hey,
I trade solely at Binance.
It's a real PITA them banning the USA as most of the volume for Altcoins comes from the USA.

So - my concern is that there will be major flash crashes in about 6 weeks time, due to the low-liquidity.
Also, any word on where all the Americans will go after Binance?
Haven't heard of a concrete replacement to fill the gap yet.

TG

Can you expound why you think there will be a flash crash due to low liquidity? If anything, I think we will see a slight rise, as people would probably be exchanging all their coins for BTC to be able to withdraw them easily.


There will be US-only version of Binance, just like there is a binance site specifically for Jersey-ers.

The Binance US will have less cryptocurrencies to trade compared to the main Binance and that may cause a decrease in volume in altcoins. I don't know if the decrease will be considered as a flash crash. We will have to wait and see.

Is it not likely that the US version of Binance will share the same order books? The reason it exists is to keep Americans on board. That relates to the portal they're permitted to enter, not where they end up. It would be pretty strange to have US only trading pairs.

There may well be coins they're not allowed anywhere near because they're potential securities and that's what you'll need to keep an eye on. I presume for the other stuff it'll be business as usual with a different login page.

That's what I've heard as well, though I'm wondering when they're going to roll it out.  In any case, Binance is the only exchange I really care to use, so I'm sure I'll be happy with whatever they do as long as there's a decent selection of coins.

It would be strange, but I'm not aware of what the US considers as securities as opposed to whatever they consider bitcoin.  Can't say I'm up to speed on the law regarding such things.

The fact that some regulations have restricted US participation in altcoin doesn't mean the price will crash or dump. Definitely, trades in USA have a way of trading same with those in China sinits not a big deal nor a major cause of low price of altcoins

I don't know why we would consider on having flash crashes due to low liquidity.I don't also believe that most altcoin comes from USA yet theres no such tracking that it is indeed mostly came from americans.As i read up theres  a US-version of binance and it seem they don't really like for their users to leak out and finding some competitor alternative.US law are way too strict which i do read out prohibitions almost in all aspects. lol

i dont think that the market will crash or something else. when the us get banned it doesnt mean they are going to stop trading, they can still trade on other platforms. i dont expect a big impact at all on the longterm.

There will probably be some market losses due to the news, but it will come when binance actually shuts down to US customers, but as others have said, there will be a sep US site, which will wash out any losses in a week or two.

Excluding US customers won't make those bitcoins disappear from the market. They will still be able to trade on other exchanges.
It will lower the volume but it shouldn't affect liquidity because as you know there are much smaller exchanges than binance that don't have liquidity problems.

If they open another platform for US customers it should be all the same even if they keep them separated. Orders work both ways. US customers are not only buying or only selling.

Will the US version of Binance require KYC? I think that will lower the volume for Binance.

Almost certainly. The only reason they'll be opening it is to be able to continue serving Americans and everywhere else is going full KYC. Since there are pretty much no KYC free alternatives I don't think it'll make all the much difference in numbers. You either cough up your details or stop using exchanges.

I expect normal fluctuations to continue once Binance closes their doors to traders in the US. It's only one exchange and there's still some big exchanges that have altcoins. It's not like Binance holds most of the trading volume and could cause some unexpected price drops.

I'm not a binance user but according to your explanation it a separately exchange between the binance american use and the main binance exchange. I think have an a little bit effect but is very minimal not to cause of crash.

It's confirmed if I remember correctly, and as far as I know this should be the URL: https://www.binance.us/

Shame that the Americans are now limited to just a few coins to trade.

there is absolutely no way you could possibly know that unless you work in Binance and have access to their KYC submitted documents!
and they are not banning US users, they are only forcing them to use their other website which all of these different platforms all link to the same database with the same liquidity more or less.

it might happen but I'd say there are much bigger concerns when you are in the altcoin market and the risks of altcoins getting dumped for literary any other reason and also the sizes of those dumps is a lot higher than this risk and they are getting dumped and see flash crashes every day anyways so it wouldn't even be a new thing!

Do you mean flash crashes in BTC price? I do not think so because China has made a similar ban and there has been no real crash, just a normal correction.
With regard to altcoins, with binance or none of it, most of these shitcoins will die over the coming years. Binance and other exchange platforms are who kept these coins alive but with a few currencies, we will survive with more regulation rules.
If you have a lot of altcoins, get rid of them.

He's talking about future volatility on Binance listed markets, not BTCUSD speculation. He's predicting a big loss of liquidity (thin order books) when Americans pull their coins off the exchange. Thin order books can definitely increase the likelihood of flash crashes (or flash wicks to the upside too).

Personally, I think many Americans will remain on Binance. The 3-month delay allows market makers to structure themselves as non US persons for the purposes of Binance's terms. And most of the small fish will trade through VPN. I think the loss of liquidity will be smaller than the OP fears.

Binance US will probably be a ghost town like Binance Jersey.

Binance never tells it's clients about what is happening with their exchange. It's always: Surprise! New Website! or Surprise! We just banned all users in the Free World! Even when the Binance exchange was hacked there was no email notification. Just: Surprise! All your money was stolen.

I think Americans are the ones who need Binance best. The majority of very few Americans trade alts. they just wait for the IEO event to buy tokens and sell them on Binance and now it's a strategy that is making a big profit from them.
I think CZ only makes a statement to get the government more favored in doing business (pay less taxes). In addition, Americans can still use VPN to exchange IPs through other Asian countries for easy transactions.

I only see the message "COMING SOON" there. Looks like this website is still under construction.

Binance administrators may have created a separate trading platform due to the new regulations for traders who are residents of the United States. I guess that all of them will be forced to pass through the full "Know Your Customer" procedure and follow additional rules.

In my opinion, these recently imposed Binance restrictions can significantly reduce the liquidity of the global crypto exchange market because many large American investors will not trade in altcoins, so perhaps this is a good news for Bitcoin.

I guess we all know that with high enough margin the market will be in debt if someone with a lot of money with a really high margin wins, so maybe if the volume gets low because of Americans leaving then the exchange could just have the insider information of who has too much margin and what not and do couple of trades their own giving them a small loss while doing it but at the same time giving them the a lot btc thing so they do make a profit after all.

However, aside from something that l really do not think that anyone would really make a big difference of volume when you involve all Europeans and Asians with other nations joining in. Its still binance and its still gets a lot of trades in there, I doubt that would change just because of Americans which is a smaller number than others on binance.

I thought they already did that, which is why Kucoin took advantage of that opportunity to even list most BNB projects including Binance itself on their exchange and since then, the market has been fine.

This is a new development that I am just hearing from you which I know nothing about, if Binance ban US citizens, the market is too saturated, and there are so many exchanges that the can use, so I don’t see how the ban of Americans by Binance will have any effect on the market, people will simply just move their coin to a more reliable exchange, that is all and I don’t know why we always think that majority of market investors are from U.S, the fact the USD pair is the major pairing currency does not mean that it is only Us that is making use of cryptocurrency more.

I am in the USA and I am removing all of my funds from Binance today.

Since user can open a new account on Binance with 2 BTC daily limit withdrawn without KYC, I think US user can still use Binance. Currently the biggest number of traffics to Binance is still from the US, so I think Binance will soon find a way for users to use Binance normally.

I can only agree with your statement because you made mention of IEO, and American will really be missing out of this since Binance is still the one that carries out successful IEO project more, and since ICO no longer pays, they get more profit joining the IEO platform, but aside this, I don’t think they need Binance that much because there are still many other exchanges that functions perfectly well and will be glad to accommodate US citizens.

I learnt that 14 percent of Binance users are made up of Americans, imagine they all leave Binance to other exchanges, don’t you think Binance will gradually be losing relevance, because Americans really pumps lots of dollars into crypto market and even without them, their IEO may not be successful on time. So Binance also needs Americans like crazy.

The last time Binance had a big hack of it's clients Bitcoins that equaled $40,000,000, the charts did not budge. Odd...

I'm guessing they didn't want to make waves, for fear of a mass exodus of liquidity. No email, quietly cutting off new signups, and allowing 3 months for an orderly exit was a good way to accomplish that. They were trying to appease American regulators but didn't want 20-30% of their liquidity to vanish overnight.


Weren't there announcements at the top of all pages on Binance? You're right, there was no email. But there weren't any customer losses either.....

If I may get you right, are you saying that Binance is doing all this because they are liquidating? If that is what you are saying, I doubt that and I think we have to be careful the way we speak and spread rumor or untrue stories. I  know that there is always a reason behind every actions, but I doubt if this is the reason why Binance is doing what they are doing against united states citizens, Binance is making enough profit from their operation and I don’t see any reason why they should be planning exit.

They have been having issue with United State, same as bitfiniex wrote to US to operate in US and they rejected. US is the one causing some of these issues exchanges are having with them, and I guess that is why Binance to Malta, a more friendly crypto community, while US is busy giving cryptocurrency users and supporters headaches.

World isn't composed only of Americans, of course banishing them will have an impact, but I personally think that this will be very limited because if we see binance's traffic, it's global.

But indeed the volume is nearly dead since a week.