binance usa
cryptocurrency
exchanges
regulations
With the official launch of Binance USA, you can be sure the day is coming where you will try to login to Binance just to be told you're no longer allowed to access the site.
Well, no longer allowed to trade I should say - they'll still need to give users the ability to withdraw their tokens. Easier said than done, as we're discovering that there isn't a single exchange that allows US traders, that also lists some of the coins you may have acquired on Binance.
While publicly they've tried to downplay what a mess this is, for those who own a variety of coins accumulated on Binance, there's no way to sugar coat it - this is going to be massive headache, requiring a combination of solutions.
Originally given the date of Sept 14th, it's surprising US traders aren't locked out already - either way, it's time to plan your move.
Where we are, how we got here...
For those who haven't been following closely - in early June, Binance announced that the only way to stay compliant with US regulators was to remove US traders from their platform.
I'll refrain from going into a long rant, but we can't completely pass over how pathetic it is that the US is the birthplace of both computers and the internet - yet we're being forced onto the sidelines of the blockchain/crypto revolution as our tech-illiterate leaders do nothing to keep up with the times, and have left regulators with laws written in the 1940's to regulate crypto.
Any company raising funds via fraudulent methods deserves to be taken down, but the SEC's confusing enforcement methods have sent totally legitimate crypto start-ups running to anywhere but here.
Switzerland jumped onto the opportunity US leaders created, as their leaders authored clear guidelines that allow legitimate crypto businesses to grow, while maintaining the ability to shut down any bad apples.
But they haven't had to shut down any bad ones - Switzerland's "Crypto Valley" is now home to over 800+ blockchain companies, and so far, none are accused of anything shady.
The end result - a massive multi-billion dollar economic boost for Switzerland, and thousands of new jobs. Much of the funding coming from accredited US based investors, now spent stimulating foreign economies.
A recent perfect example of US leader's failures causing real economic loss - while Silicon Valley is the home of Facebook, it won't be home of Facebook's cryptocurrency project "Libra" - they're off to Switzerland as well.
This is just the tip of the iceberg, if you want a better understanding of just how badly the US is screwing this up, I wrote on that in more detail here.
But you get the idea - Binance, like so many other companies, wants to avoid finding themselves in the cross-hairs of a country with the deadly combo of laws written before the invention of the internet, and regulators who aren't afraid to apply them to something as new as crypto.
Long story short - this is why you're getting the boot from Binance.
For many, there won't be 1 simple solution ...
The concern isn't over 'crypto trading' in general, it's about specific coins which may or may not be determined to be an unlicensed security by the SEC.
If you own only the big coins - Bitcoin, Bitcoin Cash, Ether, Litecoin, XRP, etc, the transition will be pretty smooth.
But if you own a variety of coins, you may have a long road ahead as there is no single place to trade everything you acquired on Binance.
Binance's solution...
"Binance USA" has just opened for business, along with a $15 reward for signing up, so go ahead and make an account, it can't hurt.
Here Binance has partnered with US based company to launch www.Binance.us - a version of Binance that uses their tech, but only offers coins they believe to have no risk of violating any US regulations.
Unfortunately, this falls way short of being a true solution for a couple reasons.
First - it isn't even available to everyone in the USA. Currently residents of 13 US states will be unable to use the US version of Binance. However the CEO says this is only the situation at launch, and they're working on obtaining the licenses needed to open to users in these states.
Second - if you own any of the coins in question, Binance USA obviously won't be listing them either.
So even with Binance USA, you're left holding coins with no place to trade them.
For the coins left in limbo...
"Never leave coins on an exchange" is a rule I generally follow personally, and that's my official advice - find a wallet you would own the private keys to, and send them there.
But you'll still need a place to trade them when the time comes.
So, for exchanges that allow US based users and carry many of the coins you can no longer trade with Binance - you should be able to find most between KuCoin and Bittrex.
Note - you'll need an account on both, many are one or the other. Everyone's needs are different so you'll have to take a look at which coins you have, and compare with the coins listed.
Unfortunately this doesn't solve everything - there's a few coins that appear to be completely homeless, with no exchange that allows US members listing them.
The rebel solution...
Binance has something called a "limited account" - this is an account where you're not required to prove your identity.
In theory a US resident could use a VPN and then go to Binance to create a limited account from another country.
Daily limits on this type of account is lower, I believe it's 2 BTC - so for the average trader this won't be an issue.
I'm not endorsing this option. The risk is unknown but potentially large - what happens if you slip up?
In closing...
There's only 1 actual solution to this - and that's the US joining the year 2019 by passing laws that acknowledge cryptocurrency is a new asset class that old laws fail to properly regulate.
There's some hope coming from a small group of congressmen, but I question if any actual work is being done these days.
If what makes the news accurately represents the work being done in Washington DC, our leaders are busy re-visiting the 2016 election, or preparing for 2020 - all while our economy continues to bleed out billions of lost dollars through the current 'scare companies and investors away' set of policies.
Do you have any tips to help fellow traders make the move from Binance? Tweet us @GlobalCryptoDev
-------
Author: Ross Davis
E-Mail: Ross@GlobalCryptoPress.com Twitter:@RossFM
San Francisco News Desk
US Based Binance Users - You're About To Get Banned! Plan Your Move To Binance USA...
With the official launch of Binance USA, you can be sure the day is coming where you will try to login to Binance just to be told you're no longer allowed to access the site.
Well, no longer allowed to trade I should say - they'll still need to give users the ability to withdraw their tokens. Easier said than done, as we're discovering that there isn't a single exchange that allows US traders, that also lists some of the coins you may have acquired on Binance.
While publicly they've tried to downplay what a mess this is, for those who own a variety of coins accumulated on Binance, there's no way to sugar coat it - this is going to be massive headache, requiring a combination of solutions.
Originally given the date of Sept 14th, it's surprising US traders aren't locked out already - either way, it's time to plan your move.
Where we are, how we got here...
For those who haven't been following closely - in early June, Binance announced that the only way to stay compliant with US regulators was to remove US traders from their platform.
I'll refrain from going into a long rant, but we can't completely pass over how pathetic it is that the US is the birthplace of both computers and the internet - yet we're being forced onto the sidelines of the blockchain/crypto revolution as our tech-illiterate leaders do nothing to keep up with the times, and have left regulators with laws written in the 1940's to regulate crypto.
Any company raising funds via fraudulent methods deserves to be taken down, but the SEC's confusing enforcement methods have sent totally legitimate crypto start-ups running to anywhere but here.
Switzerland jumped onto the opportunity US leaders created, as their leaders authored clear guidelines that allow legitimate crypto businesses to grow, while maintaining the ability to shut down any bad apples.
But they haven't had to shut down any bad ones - Switzerland's "Crypto Valley" is now home to over 800+ blockchain companies, and so far, none are accused of anything shady.
The end result - a massive multi-billion dollar economic boost for Switzerland, and thousands of new jobs. Much of the funding coming from accredited US based investors, now spent stimulating foreign economies.
A recent perfect example of US leader's failures causing real economic loss - while Silicon Valley is the home of Facebook, it won't be home of Facebook's cryptocurrency project "Libra" - they're off to Switzerland as well.
This is just the tip of the iceberg, if you want a better understanding of just how badly the US is screwing this up, I wrote on that in more detail here.
But you get the idea - Binance, like so many other companies, wants to avoid finding themselves in the cross-hairs of a country with the deadly combo of laws written before the invention of the internet, and regulators who aren't afraid to apply them to something as new as crypto.
Long story short - this is why you're getting the boot from Binance.
For many, there won't be 1 simple solution ...
The concern isn't over 'crypto trading' in general, it's about specific coins which may or may not be determined to be an unlicensed security by the SEC.
If you own only the big coins - Bitcoin, Bitcoin Cash, Ether, Litecoin, XRP, etc, the transition will be pretty smooth.
But if you own a variety of coins, you may have a long road ahead as there is no single place to trade everything you acquired on Binance.
Binance's solution...
"Binance USA" has just opened for business, along with a $15 reward for signing up, so go ahead and make an account, it can't hurt.
Here Binance has partnered with US based company to launch www.Binance.us - a version of Binance that uses their tech, but only offers coins they believe to have no risk of violating any US regulations.
Unfortunately, this falls way short of being a true solution for a couple reasons.
First - it isn't even available to everyone in the USA. Currently residents of 13 US states will be unable to use the US version of Binance. However the CEO says this is only the situation at launch, and they're working on obtaining the licenses needed to open to users in these states.
Second - if you own any of the coins in question, Binance USA obviously won't be listing them either.
So even with Binance USA, you're left holding coins with no place to trade them.
For the coins left in limbo...
"Never leave coins on an exchange" is a rule I generally follow personally, and that's my official advice - find a wallet you would own the private keys to, and send them there.
But you'll still need a place to trade them when the time comes.
So, for exchanges that allow US based users and carry many of the coins you can no longer trade with Binance - you should be able to find most between KuCoin and Bittrex.
Note - you'll need an account on both, many are one or the other. Everyone's needs are different so you'll have to take a look at which coins you have, and compare with the coins listed.
Unfortunately this doesn't solve everything - there's a few coins that appear to be completely homeless, with no exchange that allows US members listing them.
The rebel solution...
Binance has something called a "limited account" - this is an account where you're not required to prove your identity.
In theory a US resident could use a VPN and then go to Binance to create a limited account from another country.
Daily limits on this type of account is lower, I believe it's 2 BTC - so for the average trader this won't be an issue.
I'm not endorsing this option. The risk is unknown but potentially large - what happens if you slip up?
In closing...
There's only 1 actual solution to this - and that's the US joining the year 2019 by passing laws that acknowledge cryptocurrency is a new asset class that old laws fail to properly regulate.
There's some hope coming from a small group of congressmen, but I question if any actual work is being done these days.
If what makes the news accurately represents the work being done in Washington DC, our leaders are busy re-visiting the 2016 election, or preparing for 2020 - all while our economy continues to bleed out billions of lost dollars through the current 'scare companies and investors away' set of policies.
Do you have any tips to help fellow traders make the move from Binance? Tweet us @GlobalCryptoDev
-------
Author: Ross Davis
E-Mail: Ross@GlobalCryptoPress.com Twitter:@RossFM
San Francisco News Desk