Source: Instagram, Binance
Major cryptocurrency exchange Binance is allegedly allowing some users from the U.S. to trade on the Binance.com platform, instead of Binance.US.
Though trading on Binance.com for U.S. citizens has seemingly been forbidden, some alleged users are claiming that they can still trade on the site. It was reported by some reddittors some five months ago that they can still use Binance.com, though others have also reported using a virtual private network (VPN) to do so. And today, Reddit user ‘misterscorp’ posted what they say is a proof that there is a specific group of Binance users that can still use this site, without switching to Binance.US.
“Basically some of us are grand-fathered in so to speak, for now at least,” writes the user. The screenshot of an alleged email from the exchange’s customer support, dated March 11, says:
“Currently, USA users (who already has or verified the account before (Sept.12, 2019) can still continue to use their accounts as usual on Binance.com. […] However, since Sept. 12, 2019, new users won’t be able to register a new account if accessing from the US and won’t be able to verify an account or promote the account to level 2 or higher.” It added that, should there be changes or restrictions placed on these accounts in the future, the users will be notified at least a week before, recommending them to open an account on Binance.US.
“So it sucks no new comers can join,” writes misterscorp, “but those of us who registered and were verified before that cut off date are fine, and this is why we are still able to trade.” As for the limitations, they add: “We just do not have access to margin and future trading.”
In June 2019, Binance confirmed that it would enter the U.S. market and launch Binance.US, which indeed happened in September 2019. It also stated that, starting September 12, their clients from the U.S. would no longer be able to trade on Binance.com.
misterscorp concludes with an opinion that likely many in the U.S. don’t know they can still trade on Binance.com, and that this is something the exchange should make clear, clarify their policy page, and not “contradict their own policy regarding this.” They add: “I am assuming they did that to keep regulators off the back and mitigate liabilities.”
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Binance did not respond to our request for comment.
Meanwhile, the company already found itself in hot water over a resurfaced major change in the exchange’s whitepaper in January this year, raising transparency questions.