Binance, a cryptocurrency exchange, is setting up a new platform for US customers, according to their recent press release on June 13th. Binance is a Chinese corporation that moved to Japan after the chinese ban on cryptocurrency in september of 2017.
Binance is moving all of its US based customers to a new platform that it has established with its partner called BAM Trading Services. This is to align its services to comply with the Financial Crimes Enforcement Network (FinCEN). All this is in keeping with the new terms and conditions mentioned by the company.
Binance CEO Changpeng Zhao has made an appeal to their user base in the US saying, “Some short term pains may be necessary for long term gains. And we always work hard to turn every short term pain into a long term gain.”
The mission of the Financial Crimes Enforcement Network is to safeguard the financial system from illicit use, combat money laundering, and promote national security through the strategic use of financial authorities and the collection, analysis, and dissemination of financial intelligence.
The new platform is a fiat-to-cryptocurrency exchange in the US that is in compliance with the recent directives of the FinCEN. In simple terms, fiat refers to any money that does not have any value by itself, except that it is backed by a government (The Dollar, Pound, Yen, etc.). Cryptocurrency, on the other hand, is valued based on its actual demand and supply as an exchange. In other words, it is a complex system based on its use as a currency. If this confuses you, you may want to research this as most currencies in the world are valued this way.
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies. Since early 2018, Binance is considered as the biggest cryptocurrency exchange in the world in terms of trading volume.
US customers of Binance will retain their wallets and cryptocurrencies but will not be able to trade or deposit. A period of 90 days has been provided so that users may move their crypto to the new platform.
In case you’re a Binance customer, you may be happy to note that the US-based BAM Trading services will be using the Binance Wallet Technology and matching engine products.
You may bypass the restrictions using a Virtual Private Network (VPN). However, the maximum a non-verfied user may trade in is capped at 2 BTC for 24 hours. If you need anything more, you will have to comply with the verification process of cryptocurrency users of the US government.
Statements from both the companies are quoted below –
“We are excited to finally launch Binance US and bring the security, speed, and liquidity of Binance.com to North America. Binance US will be led by our local partner BAM and will serve the U.S. market in full regulatory compliance.” – Binance CEO, Changpeng Zhao
“It is an honor to partner with Binance, leveraging its tier-one security and technology in tandem. We are committed to providing a secure and compliant platform, and beginning the start of a fruitful alliance with Binance.” – BAM Trading Services Representative.
A similar move was made by the Huobi Group — the operator of the flagship Huobi Global crypto exchange — when they launched a U.S.-based partner trading platform last year called HBUS. It was later changed to Huobi.com.