Binance wants to block American crypto traders more consistently
For fear of legal consequences, Binance wants to increasingly block American crypto traders from accessing its own platform.
Binance founder and managing director Changpeng Zhao („CZ“) believes that in the future he will have to step up efforts to prevent „intelligent“ crypto traders from the USA from accessing the main global platform of his cryptocurrency.
In an interview with Bloomberg, CZ states that Binance “needs to be smarter when it comes to blocking” so that American traders can no longer access the crypto trading platform.
To this end, he stated:
“Actually, we’re always improving our blocking, but there are always a few people who bypass our blockades and use our platform. We have to find a smarter way to block so that we can protect ourselves and actually lock them out. “
Binance, the world’s largest crypto exchange in terms of trading volume, had made its platform inaccessible to US customers from 2019 , as it would otherwise face legal penalties in the United States . So that American customers are not completely excluded from crypto trading, the company then founded the subsidiary Binance.US in cooperation with BAM Trading Services, which has approval from the American tax authority FinCEN and is legally allowed to offer crypto currencies in the USA.
In an interview with Bloomberg, however, Binance CEO Zhao emphasized that Binance.US is an independent company that is only a licensee of Binance’s technology and that the Malta-based crypto exchange supports its marketing.
The reason why American crypto traders prefer to access the trading platform, which is open to the rest of the world, is that the trading volume on Binance.US should only make up a fraction of the volume on Binance. However, it should be noted that trading volumes can often be artificially inflated and do not necessarily reflect actual trading activity. As Cointelegraph reported , even large crypto exchanges have repeatedly given false information about their trading volumes in the past.
Many crypto exchanges have difficulties establishing themselves in the USA, which is primarily due to the unclear legal situation with regard to cryptocurrencies
In addition, there is a risk of serious consequences, which can be seen in the recent civil law indictment against the influential crypto trading platform BitMEX. The American supervisory authority for derivatives trading CFTC accuses the crypto exchange of having unlawfully traded in derivatives.
At the same time, the US Department of Justice has initiated criminal charges against the management of BitMEX, as they are said to have been guilty of money laundering on top of that.
In response to the allegations, the crypto exchange has announced that it will take stricter measures against money laundering.