Further Details About Binance US Revealed

Further Details About Binance US Revealed

Following the announcement of the creation of Binance USA earlier in the year, the American company revealed details of the cryptocurrency it will be accepting. What many in the industry are considering it Binance‘s attempt to challenge its main rival, Coinbase, in its home territory, has sparked renewed interest in the topic of regulatory compliance.

US Customers Blocked from Binance

Soon after announcing the creation of Binance US, Binance’s CEO, Changpeng Zhao tweeted that Binance would temporarily block US users. Citing the need for short term pains in order to make long term gains, Zhao explained that users from the US would have 90 days to accept new verification and compliance terms. Whilst blocked, users would still be able to make withdrawals, but no trades or deposits will be possible.

This was a bold move by one of the largest exchanges in the world, but it was also a risky move since over 20% of its users are American. 

Binance & Regulation

Binance has long been known in the industry to circumvent regulatory requirements using loopholes and other mechanisms. The exchange, which was set up in China, moved to Japan and then to Malta in order to operate with as much regulatory freedom as possible.

Furthermore, the exchange also seeks to maintain the vast majority of its assets in crypto, so as not to tie its fiat currency with financial institutions. This allows it to be extremely nimble while making it very difficult for lawmakers to claim jurisdiction on the company’s assets.

However, Binance US, which will be an independent entity from the Maltese exchange, will be operating very differently. Indeed, Zhao has confirmed that the company will be adhering to US regulation, in a bid to “shield our users from fraudulent blockchain projects and combat financial crimes.”

Asset Risk Framework

Binance US has issued an asset risk framework, similar to that of Coinbase, in order to comply with regulation and lower the investor’s risks. The five primary points of this cryptocurrency framework are:

  1. Comply with US AML and CFT regulation
  2. The coin’s team has a clear strategy that solves a real problem
  3. The coin has a strong team and supportive community
  4. The coin’s market supply is fair, with limited manipulation
  5. The market’s supply and demand surpass the minimum requirement for Binance USA to turn a profit

The new exchange will begin by offering 30 coins which it has deemed to fit their criteria. This number represents 30% of Binance’s full list of available assets. Users will be able to trade BTC, ETH, XRP, BCH, LTC, BNB, NANO, EOS, XLM, LOOM, ADA, DASH, LINK, IOTA, ETC, USDC, VET, BAT, PAX, TUSD, RVN, USDT, WAVES, REP, ZRX, ZIL, MANA,  ATOM, NEO, HOT.

Apart from including the more popular coins, including Bitcoin and Litecoin, Binance USA will also offer emerging assets, including Decentraland, Stellar, and Chainlink. Several of these less-known coins are also available on Coinbase, adding further speculation on Binance’s primary intentions.

Recently Similar News

cex-promotion exmo-promotion

Latest Guides

Latest News

Blockchain,Learn,Malta

The University of Malta To Offer a Masters in Blockchain

It is now possible to get a certified degree in the blockchain and distributed ledger at the University of Malta. Malta has long established itself as very much the hub of cryptocurrency. The small Mediterranean island has been one of the first locations in Europe to provide the infrastructure for the industry to thrive through […]

20 October, 2019
cryptocurrency hedge funds,Custodian,Fidelity,Updates

Crypto Custody Services From Fidelity Set to Launch

In a new interview, the CEO of Fidelity Investments has announced the roll-out of their much-anticipated crypto custody service. Speaking to The Financial Times, CEO, Abigail Johnson explained that after year-long preparation it was ready to venture into this new area of cryptocurrency investment. This was described by Johnson as “enterprise-quality custody and trade execution […]

19 October, 2019
BitPanda,Europe,Finance,Payment Solution

You Can Now Send Money & Pay Bills with New BitPanda Pay

The exchange platform, BitPanda, has unveiled a new BitPanda Pay service which will allow you more freedom to use your BitPanda balance in everyday life. BitPanda will allow users to bridge the gap between your holdings in the cryptocurrency world and the financial services you need to take off in the real-world. The new service […]

19 October, 2019
Binance,Futures Trading,Investment,Updates

Binance Futures Increases Leverage to 125x

As of today, traders who use Binance Futures will be able to benefit from the larger Leverage on both margin and trading available on the service. Binance Futures has been up and running for a couple of months now and has so far proven to be a big hit with traders. Owing due to its […]

18 October, 2019
Blockchain,CoinEx,Launch,Promotion

CoinEx Announce Chain Nodes Election Competition

CoinEx are celebrating the latest addition to their service with a competition that will see prizes worth  15,000,000 CET become up for grabs! As you may already have CoinEx are currently in the process of setting up the CoinEx Chain, a service which promises eventually to see the launch of the new decentralised exchange platform. […]

17 October, 2019
Exchange Platforms,KuCoin,Listings,Updates

KuCoin Reveal 14 Exchange Centre Updates & ROOBEE Listing

KuCoin has today announced 14 new changes to their exchange centre which promises to improve the platforms overall experience. While also adding a new listing to the platform, ROOBEE. The so-called “People’s Exchange” had today come even more user-friendly as they have outlined a long list of different updates that should ensure that it is […]

16 October, 2019
Binance,BNB,Investment,Native Coin

Binance and Amun AG Team Up For ABNB ETP Project

Leading exchange platform Binance and Swiss digital assets firm, Amun AG, have joined forces for an exciting new project dubbed as a “World First”. In what is described as the “first step” for their partnership, the two firms will be launch what is known the BNB ETP, a tradeable asset that is already up, running […]

15 October, 2019
Ledger,Nano X,Promotion,Wallets

Ledger Unveil Commemorative Flagship Product, Nano X

Hardware cryptocurrency wallet specialist, Ledger are celebrating their 5th year delivering top-quality storage product with a commemorative version of their flagship product. The Ledger Nano X To The Moon edition as it is known is said to reflect the last 5 years of crypto evolution while staying true their motif of “persevering towards the moon” […]

15 October, 2019