BitMEX scandal escalates? Binance main site bans US users: Please use Binance US

Due to regulatory concerns, leading cryptocurrency exchange Binance has started blocking access to its platform for users in the United States without further notice. This marks the first substantial measure taken by Binance since its "verbal announcement" in July 2019 that it would cease services to U.S. citizens starting in September of the same year.

Final Ultimatum: Clear Assets Within 90 Days

Despite previous announcements of service termination, U.S. citizens can still access the exchange. Users simply need to click "I am not a U.S. person" to open an account on Binance.com.

However, according to The Block, Binance is strengthening its ban measures based on user IP locations and is requesting users to clear assets within 90 days, as indicated in an email received:

We have noticed that the IP address associated with your account is related to the U.S. Due to regulatory requirements, we cannot provide services to U.S. citizens or residents.

If you are a U.S. citizen or resident, please transfer your assets from your account within 90 days. You may consider using Binance US or other platforms in the U.S. region.

Binance customer service further explained that once the system detects account access permissions, including the U.S. resident IP location mentioned in the email, an email will automatically be sent to the relevant users.

BitMEX's Decapitation Effect

Binance's action comes after the U.S. Commodity Futures Trading Commission (CFTC) charged BitMEX, a Bitcoin derivatives exchange, with illegal operation of an unregistered trading platform and violations of anti-money laundering laws on October 2nd Taiwan time.

In response, BitMEX announced the complete withdrawal of CEO Arthur Hayes and co-founder Samuel Reed from the management team. Another co-founder, Ben Delo, and Head of Business Development Greg Dwyer are also no longer involved in operations. BitMEX has accelerated its KYC program, requiring all users to complete verification by November 5th. Users who remain unverified by December 4th will have their funds further restricted.

Promoting Binance US Adoption

Despite this, Binance has not given up on the United States, a country with a population of 330 million. According to CoinDesk, Binance.US has joined the Silvergate Exchange Network (SEN). Binance CEO Changpeng Zhao also retweeted this news on Twitter.

https://twitter.com/cz_binance/status/1325975309477310464

The Silvergate Exchange Network provides a settlement network for large trading institutions, operating 24/7. Members in the crypto space include exchanges like Gemini, Kraken, and ErisX.

Binance.US was launched in September 2019, coinciding with Binance's verbal announcement of discontinuing services for U.S. users. However, compared to Binance.com, its main platform, Binance.US still has lower trading volume. According to data platform CoinMarketCap, Binance.US ranks 21st, with trading volume far behind the top exchanges, around 110th in 24-hour trading volume, lagging behind many unknown exchanges and even decentralized trading platforms.