Binance is clamping down its US-based customers for the second time, but now it will be done. The world’s largest cryptocurrency exchange has been sending email notifications to users in the US, giving them 14 days to close their accounts.
“Dear user, as we constantly perform periodic sweeps of our existing controls, we noted that you are trying to access Binance while having identified yourself as a US person,” the email reads. “Please note that as per our terms of use, we are unable to service US persons. You have 14 days to close all active positions on your account and withdraw all your funds, failing which your account will be locked.”
This is not the first time Binance asked US customers to leave, but it signifies the exchange’s most substantial say on the matter yet.
Last July 2019, Binance had given its users 90 days, until September 12, 2019, to show evidence that they hadn’t violated the site’s terms of service, or even lose access to trading and deposit functions.
The warning came after Binance announced that it will launch Binance.US in partnership with unknown BAM Trading. Binance.US offers few token pairings and is not available in all states. Still, it is regulated, providing a soft landing for those who want to move their account balances.
But the Binance users from the US ignored the warnings. Binance has partly relied on user-provided information, and customers can claim that they weren’t American when setting up an account.
In the past, Binance has employed a tiered verification system that allowed users to trade or withdraw limited amounts of Bitcoin thru spot trading without going through Know-Your-Customer verification that can be found on a US-based exchange. It means, if the users weren’t honest, Americans could still use the business.
Early this month, it has been reported that Binance had been sending out emails to users with US associated IP addresses. Anyone logged in stateside was accountable to receive an email giving them 90 days to switch platforms. But with a virtual private network, users can still get around the restrictions.
Binance’s latest issue was less than a week when it announced it was suing Forbes and two of its journalists for defamation after Forbes published an article claiming that Binance planned to set up an American subsidiary, namely Binance.US, to “distract regulators with feigned interest in compliance.”
The article stated, “All the while, potential customers would be taught how to evade geographic restrictions while technological workarounds were put in place.” Binance strongly denies many claims in the article.
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