When Binance bans Americans - Will the low liquidity cause flash crashes?

[Coin-1]

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

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'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.

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.

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[el kaka22]

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.

[fullhdpixel]

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.

[Pipdips]

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

[icekohl]

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

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.

[sana54210]

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

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 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.

[Pipdips]

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

[exstasie]

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!

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.

Even when the Binance exchange was hacked there was no email notification. Just: Surprise! All your money was stolen.

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.....

[bitgolden]

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!

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.

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.

[Woshib]

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.

[pastet89]

But indeed the volume is nearly dead since a week.