Binance in the US: What happened and what’s next?

Binance has been one of the most significant exchanges within the community crypto for its excellent service for the sale and purchase of Bitcoin and Altcoins. The platform is at the service of a long list of countries throughout the world for the operations of experienced traders and beginners and despite having gone through a millionaire hack about a month ago, the exchange remains standing and responsibly complied with protecting the digital assets belonging to its users. Currently, Binance has taken a series of decisions that marked the exit and re-entry of its operations for the United States, which has caused an impact on the current market and will continue to influence during the coming months.

U.S users would lose access to the Binance Exchange

Due to some restrictions, Binance, the largest home exchange from cryptocurrency to cryptocurrency by volume, announced that it will stop serving US individuals and corporations on its main platform. As of September 12, said users will stop exchanging cryptocurrencies on the website, including the inability to make deposits. The exchange currently allows withdrawals of up to 2 BTC (about USD 18200), without the need for verification, although the updating of the policies suggests that “some users may be requested to provide evidence that the data in the customer register are consistent with the Binance Terms of Use”.

This event was seen to come, although that does not mean that no attempt has been made to avoid, however, today keeps the American regulations in a very strict character about the behavior and actions of all exchanges operating in American territory.

Under normal circumstances, approximately 15% of Binance.com traffic comes from US users, which represents half of the January percentage in 2018. Binance.com offers marketing operations for more than 150 different cryptocurrencies. Although users could enter the platform through the use of VPN, they are exposed to being penalized with access to their accounts, in which they may have stored a digital asset.

The exchange currently allows withdrawals of up to 2 BTC (about USD 16500), without the need for verification, although the updating of the policies suggests that some users may be requested to provide evidence that the data in the customer register are consistent with the Binance Terms of Use.

The response of the market to this Aryan event obviously led to the sharp decline of BinanceCoin (BNB) of at least -11.42%, thus reaching $ 33. At the same time, the altcoins (a fundamental part of Binance) will be cut in addition to the decision, thus reducing their volume, as in the case of Binance Uganda, Binance Jersey and Binance Singapore.

This is not the first time that an exchange excludes the United States of America from the list of countries in which they provide their services, because this country has put a series of legislative barriers that prevent free operations by many platforms, which leads to two events: The obstinacy of traders and crypto enthusiasts who want to start in the market or are currently doing trades and abstention from different sites to work in the USA, fleeing to possible sanctions and restrictions.

The launch of a Binance extension for the United States

This resolution would come in conjunction with the launch of a new Binance portal registered in the country, which will adhere to local regulations. The BAM Trading Services firm will be the partner that will operate the platform, which will use Binance’s wallet and intelligent engine technologies (matching engine technologies).

Binance had processed at least $250 million in direct transactions in Bitcoin for as long as 24 hours, while CoinMarketCap reports the crypto equivalent to $1.7 million. It is safe to say that the US market represents a pool of lucrative investments (even today), however, the strict regulatory approach by the country tends to scare away different exchanges or at best, it produces a cut in its holdings, as did Poloniex and Bittrex.

The official launch of this new extension in the United States does not have an exact date so far. However, although residents have already been able to access its trading platform, the measure would represent the first formal entry into the US market by Binance.

During a statement, Changpeng Zhao, CEO De Binance, said he was very happy to start working on the platform of Binance US, in order to provide the security, speed, and liquidity that characterizes the exchange in its participation throughout all regions to North America.

On this occasion, Zhao stated:

“Binance US will be directed by our local partner BAM and will serve the US market in full compliance with the standards.”

This new Binance platform for the United States will be developed in a competitive environment with Coinbase, Geminis, and Kraken, all other things being equal. Although the exchange had a wide range of altcoins, this extension will mainly focus on Bitcoin (BTC) and Ethereum (ETH), which could mean a disadvantage at this point. The company must start a period of operations with the most basic and direct digital assets available in the market (although these are precisely the most voluminous).

At the moment, everything seems to indicate that Binance decided to avoid legal complications with the SEC (U.S. Securities and Exchange Commission), which is why the exchange will not be in charge of managing operations but to provide its services as a wallet.

Binance has a new ally

According to the source, it is not clear who is behind BAM Trading Services. The company registered as a money services business (MSB) with the Financial Crimes Network (FinCEN) of the US Treasury, with an address in San Francisco, California.

The registration file clearly states that FinCEN is not going to be verifying information submitted by the MSB, and it Will only reflect what was sent directly to the regulator. Under the terms of the MSB registry, the company has only registered to conduct business in California.

In addition, it has been reported that BAM Trading seems to be working with the Koi Compliance, of the crypto trading over-the-counter (OTC) platform, Koi Trading, since the BAM email address in the FinCEN registry is described as “C / o Koi”. Binance Labs invested USD $ 3 million in Koi Trading on January 24.

During a press conference, a representative of BAM Trading Services said:

“It’s an honor to partner with Binance … taking advantage of their level of security and technology in tandem.”

Binance users may (once the platform is ready) carry out transactions with the cryptocurrencies, which are considered as securities by the SEC. This means that each and every one of the transactions carried out within the exchange will be monitored and under the jurisdiction of the US entity, which could subject the company to an investigation in case of irregularities. Like the rest of the digital assets, BNC could also be a tradable value for the legislature in charge.

By creating a platform that can follow a set of rules imposed by the competent area in the United States, Binance will be able to provide its services in the highly valued American market and, although its scope may be limited, it will not have to face the authorities nor risk more than they can earn.

The decision of Binance to launch this platform in this opportunity can be seen as a curious fact since the United States has had strict regulations for cryptocurrencies for months ago. However, this did not seem to affect the operation of Binance.com, which makes many users wonder: Why now?

All the roads seem to lead to FATF, the International Financial Action Task Force. The authority plans to publish on Friday, June 21 a document to monitor the trade of cryptocurrencies around the world. A group of legal recommendations that could be taken into account by more than 200 countries, including the United States.

The publication could affect bureaux de change, cryptocurrency funds and even custody services. Media outlets say that the document could require startups to provide information about their clients and about transactions made on their platform. In this regard, it would not be strange to expect the US authorities to impose these recommendations as requirements to operate legally in their territory.

Although American laws currently do not give much freedom to the uses applicable to cryptocurrencies, a large percentage of US citizens manage their economy in these digital assets, either trying to develop successfully a savings plan that can multiply their income to double or to opt for a decentralized option of money. If time allows more companies to continue adopting Blockchain and/or cryptocurrencies, it is possible that their adoption in legislative terms will arrive little by little, allowing different exchanges to operate freely in the United States.

As for the volume of Binance, the white paper of Facebook’s Libra Project has recently come out to the public, which will be tradeable by other cryptocurrencies. Logically, the supply of this stablecoin will be in different exchanges and in large quantities, so it is safe to say that Libra could generate an additional volume both on this platform and in other markets, both local and global.

The construction and management of a space like Binance US will be somewhat slow if we want to compare it with the main platform, however, the future holds many other important (and positive) news regarding crypto, as well as the launch of many other digital assets that will be available in different places. Binance continues to develop as one of the most important exchanges in the world, so it will not leave any of its extensions in bad conditions, on the contrary, it must comply with the commitment to optimize all its features.