Binance says its customers have 90 days to comply with its updated terms of use, which states that the leading crypto exchange is “unable to provide services to any US person”. Users in the United States will still have access to their funds and wallets, but will no longer be able to trade.
The news has triggered a big drop in the price of Binance Coin (BNB), which can be used to pay for discounted trading fees on the exchange. At time of publishing, BNB is down 11.42% at $31.03, according to CoinMarketCap.
Traders are analyzing the impact the change will have on access to various cryptocurrencies, particularly the many altcoins on Binance.com that are not supported in the US.
#Binance Terms of Use Reviewhttps://t.co/KjRMpqrR98 pic.twitter.com/ItYZR6milD
— Binance (@binance) June 14, 2019
The change comes as Binance prepares to launch a separate, fully regulated crypto exchange in the US.
“As part of our continuing compliance efforts, Binance constantly reviews user accounts to improve our platform security and to comply with global compliance requirements.
Accordingly, some users may be required to furnish evidence showing that their account registrations are consistent with Binance’s Terms of Use. Binance regrettably cannot continue to serve users who are found to have violated the Terms of Use and are unable to demonstrate otherwise.
After 90 days, effective on 2019/09/12, users who are not in accordance with Binance’s Terms of Use will continue to have access to their wallets and funds, but will no longer be able to trade or deposit on Binance.com.”
Binance CEO Changpeng Zhao says he believes the benefits will outweigh “short term pains” for US users in the long run.
There will be a few restrictions on https://t.co/9rMMAmtCxH accompanying this. But 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. https://t.co/gl1M1cwPYB
— CZ Binance (@cz_binance) June 14, 2019
Since launching in mid-2017, Binance gained traction among cryptocurrency traders worldwide because of the large swath of altcoins it introduced to the community and supported. Twitter user Remigoomba posted an overview of the coins available in the US on Coinbase, Bittrex, Poloniex, Beaxy, Kraken, eToro, Robinhood and HBUS compared to the coins currently available on Binance.com.
Here is the breakdown of what coins will still be available (as things stand) to US customers through US compliant exchanges once @binance stop US based trading in September pic.twitter.com/OSawHb9GX6
— Goomba (@im_goomba) June 14, 2019
The chart shows that several altcoins that are supported on Binance.com, such as VeChain (VET), EthLEND (LEND), Request (REQ), Po.et (POE), Etherparty (FUEL) and Enigma (ENG) are not available in the US on any of the leading platforms that are referenced, suggesting that US traders may no longer be able to trade them once they are prohibited from trading on Binance.com.
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