Binance Exchange Prepares for US Launch, Partners with BAM Trading
Binance prepares to open a US branch, compliant with local regulations, after opening a partnership with BAM Trading. US persons will no longer be served by the Binance.com central exchange.
Binance, one of the most influential exchanges for international traders, plans to open a US-based branch, specifically targeted to US traders. The Binance team announced the upcoming launch, coming along with a BAM Trading partnership.
“We are excited to finally launch Binance.US and bring the security, speed, and liquidity of Binance.com to North America,” said CZ (Changpeng Zhao), CEO of Binance. “Binance.US will be led by our local partner BAM and will serve the U.S. market in full regulatory compliance.”
The news of a special US division arrives just as Binance announced it is closing off all US states from trading on Binance.com. Despite the Asian origins of the exchange, US traders have made as much as 30% of all trades. But upcoming harsher restrictions for digital asset operators are making exchanges rethink their approach to the US market.
Binance is also starting a review of all accounts, and starting to bar users from trading if they break the new, updated Terms of Service. The changes on Binance mark a new era in cryptocurrency trading, as initially the exchange was open to all traders. Later, the market started to perform stricter user screening, and excluded certain jurisdictions from trading or token sale participation.
In its renewed Terms of Service, Binance annouces that it “is unable to provide services to any U.S. person.” This means that US traders have another three months to finalize their activity on the exchange, and later withdraw their assets.
The move of Binance follows decisions by Poloniex, Bittrex, and Gate.io to restrict US-based buyers from certain types of coins and tokens, usually those that pay a form of passive income. But Binance goes a step further, setting aside American users. The upcoming Binance USA exchange may mitigate the loss of a global market.
Binance remains one of the most liquid markets, including a decentralized exchange (DEX) that is still accessible to all users. Binance volumes were around $1.9 billion’s equivalent on June 14, and is one of the most liquid exchanges serving the growing demand of Asian traders.
After the news of the dramatic changes, Binance Coin (BNB) slid toward the $33 range, after peaking at $36 late on Thursday.