Binance to Block All U.S. Users, Launch Regulation-Compliant Spinoff Site
Binance has announced that it will deny all cryptocurrency exchange services to users in the United States in the near future.
One day prior to this announcement, Binance stated that it would be launching a new partnership with BAM Trading Services Inc. to develop a Binance.US site that would cater to U.S. customers. In a short page of text, the fact that this new site is compliant with U.S. regulations is mentioned no fewer than three times.
“Some short term pains may be necessary for long term gains,” wrote Binance CEO Changpeng Zhao on Twitter. “We always work hard to turn every short term pain into a long term gain.”
Binance suffered a substantial hack in May, losing more than $40 million worth of bitcoin. At the time, this loss represented more than 2 percent of Binance’s entire liquidity. This damage was substantial enough to warrant significant alterations to Binance’s security. Since then, other exchanges have followed suit and begun to enhance their own security practices.