Crypto Exchange Binance.com to Block US Customers from Trading

Binance.com, the world's largest cryptocurrency exchange, is revamping its internal policies and cracking down on wayward users.

The Malta-based exchange announced Friday morning that it was reviewing user accounts to ensure they follow Binance's terms of use and know-your-customer (KYC) procedures and will remove deposit and trading permissions for anyone in violation of its policies.

In an terms of use agreement revised on June 14, the exchange's general site notably stated that "Binance is unable to provide services to any U.S. person."

The news comes less than a day after Binance announced it was formally expanding to the U.S. via a dedicated platform. The exchange also previously said it would strengthen its compliance and security practices through a number of partnerships, most notably with software provider Chainalysis and KYC/AML tool provider IdentityMind.

"Binance constantly reviews user accounts to improve our platform security and to comply with global compliance requirements," the company said, adding:

"Accordingly, some users may be required to furnish evidence showing that their account registrations are consistent with Binance's Terms of Use. Binance regrettably cannot continue to serve users who are found to have violated the Terms of Use and are unable to demonstrate otherwise."

The exchange further stated that effective on Sept. 12, 2019, "users who are not in accordance with Binance’s Terms of Use will continue to have access to their wallets and funds, but will no longer be able to trade or deposit on Binance.com."

Previously, Binance listed 15 countries and six U.S. states (including New York) on a "restricted countries list" page.

Binance CEO Changpeng Zhao image via CoinDesk archives

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Nikhilesh De

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.