The news comes just hours after the company announced another important business feature. Implementation of a completely separate trading terminal for US citizens. This trading terminal will be created to better comply with local regulations. These local regulations address various matters, one of which being margin trading.
Traders Already Scheming
The platform understands the fact that US traders can very easily avoid these new restrictions. One such way to avoid the restrictions is to install a VPN on their devices. Then, you can access the website through the VPN. But regardless of their efforts, unverified traders will still have restrictions on things such as withdrawals and deposits.
At the moment of writing this article, Binance is still maintaining its 2 BTC within 24 hours withdrawal cap on unverified users. Those who want to be verified will have to provide documents to prove their identity. Once they’re identified as US citizens, they will be consequently restricted from placing trades.
According to the CEO of Binance, the cryptocurrency billionaire Changpeng Zhao, the fact that Binance prohibits US-investors is a short term setback for the platform in anticipation of long term gains for the community.
However, the company is hoping to mitigate this loss. Mitigation will occur through providing local crypto-to-fiat exchanges in regions like Jersey.
It’s only clear that the restrictions will be activated sometime in September 2019, but what’s not clear is the timing of the launch of the crypto-to-fiat exchanges by Binance. At these exchanges, they will be using its own stablecoin.