TL;DR Breakdown
- The world’s largest cryptocurrency exchange, has been slammed by a slew of regulatory problems and no longer allows US users to access exchange.
- The U.S. government had been investigating Binance for tax fraud
Binance announced that it would no longer allow US users to access the exchange in 2019. It wasn’t until November that it disabled access to Binance.com, its leading site for US users. It relocated those individuals to Binance.US, a separate company’s website run by BAM Trading Services, which has a considerably smaller range of coins.
The worldwide platform has been the target of regulatory scrutiny since its debut in 2019. Regulators in the United Kingdom and Italy have also banned them from operating, whereas officials in Hong Kong and Japan have alerted investors about it, among other things. According to a report by Bloomberg, the US government had been investigating on tax fraud, money laundering, and insider trading as recently as September 2021.
According to Bloomberg, the Commodity Futures Trading Commission is investigating whether it engaged in insider trading or market manipulation by “trading on client orders before executing them,” according to Bloomberg. Binance denied any wrongdoing.
Following the charges against another cryptocurrency exchange, BitMEX, the CFTC, and the Department of Justice brought allegations that it violated know-your-customer rules and other laws.
According to Forbes, it planned to avoid US regulation by establishing a subsidiary in the United States and circumventing “geographical limitations” through “technical workarounds,” which they denied.
According to crypto investors, the US or other regulated jurisdictions-based crypto traders have long known that a VPN might be used to access the platform. Additionally, the crypto market’s global scale alleviates the business’s anxiety about regulatory constraints in the United States.
However, the murky regulatory environment appears to have impacted the senior leaders. After three months in charge of Binance.US, Brian Brooks, former head of the Office of the Comptroller of the Currency, resigned due to strategic differences in August. Brian Shroder, who previously worked for Ant Group and Uber, was named president in September.
Binance.US
Binance.US is a partner of Binance, the world’s largest cryptocurrency exchange by trading volume and which was founded in China. The original platform ceased to accept US customers in 2019 and announced it would instead work with a U.S.-based version of its platform.
The SEC has turned its attention to Binance.US, previously referred to as a US partner. According to the Wall Street Journal, the Securities and Exchange Commission is currently looking into the connections between Binance.US and two firms owned by founder Changpeng Zhao.
Although the original Binance is no longer available to US investors, Binance.US now offers cryptocurrencies for purchase. Binance.US’ main appeal is its low fees compared to other exchanges. It also features an easy-to-use buy/sell option for newcomers, and more expert traders can use its in-depth “basic” and “advanced” trading platforms.
How can US residents get access to Binance?
Cryptocurrency investors and traders have been unable to access the world’s most prominent exchange, Binance.com, which has led to a drop in prices on other businesses. The platform is the biggest cryptocurrency exchange, with over 500 different coins available and billion market transactions daily.
When they stopped accepting US investors, anyone attempting to visit the Chinese-owned firm via an American IP address would encounter digital roadblocks. Due to geo-restrictions and US rules, domestic residents and foreign tourists using their accounts cannot connect to the site.
However, using a VPN to access from the United States is relatively simple—all you need is a virtual private network. Not only will you be able to circumvent this geo-blocking, but you’ll also have much more protection for your sensitive financial data and online activity, thanks to the enhanced security VPNs provide.
The technology that allows you to circumnavigate these digital barriers has also advanced. If crypto investors want to use Binance or their secure crypto wallets for transactions, they may do so with a VPN.
If you’re on US soil, a VPN can reroute your connection through one of their servers in an eligible country of your choice, such as Sweden, Switzerland, or Poland. It allows you to access lawfully by skipping these geofences.
Keep in mind that they prohibits using VPNs to access the platform, so even if it’s unlikely, your cryptocurrency account may be closed.
