Stating that US users will not be able to use the exchange’s main platform since September last year, Binance has started blocking the entry of those whose IP addresses belong to the USA.
Binance has begun to block the login of US citizens from its main platform.
In June 2019, Binance announced that US individual or corporate users would not be able to use the exchange’s main platform as of September of the same year, but there was no clear ban on the issue so far, US users click on the “I am not an American citizen” box while registering on the exchange. had been enough. Some customers could easily overcome this obstacle by using VPN. When the situation is checked, the option to open a membership by stating that he is not an American citizen, even if he is an American citizen, seems to be available in the exchange.
“Withdraw your funds within 90 days”
It turned out that Binance sent an e-mail to its customers regarding the issue. According to The Block, the Malta-based exchange is sending the following e-mail to its users whose IP address has been determined to belong to the United States as of Sunday:
“There is a possibility that your account is based in the USA, due to an IP address you have connected to in the past. Due to legal requirements, we cannot provide services to US citizens or residents of this country. If you are a US citizen or resident in this country, please withdraw your funds within 90 days. You can use Binance US or other platforms in the USA ”
“When the system detects that someone is not meeting the terms in the email, this mail is automatically sent to that person,” said a member of the Binance customer support team.
It was also noteworthy that Binance’s move came after the US government’s lawsuits against the crypto derivatives exchange BitMEX.
The US Department of Justice and the Commodity Futures Commission recently accused BitMEX and its founders of violating Know Your Customer (KYC) and money laundering regulations. After this, BitMEX accelerated the renewal of the KYC program and required customer accounts to be approved as of November 5, approximately 3 months before the date of February 21, which the US government gave them.
Deribit exchange, which is BitMEX’s competitor, also brought similar obligations to its customers. Derbit also does not accept US users and country-based IP addresses to the exchange.
Binance has also been under the supervision of regulators for a long time… In September, the Financial Task Force (FATF) published a report stating “the operation center is changing to avoid regulations” regarding the Malta-based stock exchange.
Finally, Forbes recently reported on Binance’s efforts to evade US regulators. The report alleged that Binance designed an elaborate corporate structure to deliberately deceive regulators and secretly profit from crypto investors in the United States. Binance CEO Changpeng Zhao firmly denied these allegations.