Traders from the United States will soon be able to trade on the exclusive Binance US platform, which was announced for the first time in June this year. Offering only 13 trading pairs at the start, the North American exchange will follow a strict regulatory framework.
Launching today, the exchange will feature the following digital assets: Bitcoin, Ether, Bitcoin Cash, Litecoin, XRP, Binance Coin, and Tether.
According to a blog post released by the Binance US support team, the exchange will list the second batch of coins, following an evaluation according to the Digital Asset Risk Assessment Framework. These coins include Cardano, Ethereum Classic, XLM, Basic Attention Token, and 0x.
Seen as a bearish event for dozens of newly listed altcoins and IEOs, some analysts believe that restricting US citizens from having access to most popular altcoins may result in a significant drop in their trading volume.
In an AMA (Ask Me Anything) hosted by Binance US CEO Catherine Coley, she revealed a list of US states that won’t have access to the exchange. The exchange will be gradually released across the United States, excluding the following states at the start: Alabama, Alaska, Connecticut, Florida, Georgia, Hawaii, Idaho, Louisiana, New York, North Carolina, Texas, Vermont, and Washington.
Additionally, Coley stated that users will enjoy the benefit of having 0% trading fees until the 1st November 2019. Users who wish to use the exchange are required to provide verify their account and provide their social security number (SSN). Users who successfully complete the verification process will receive $15 as a sign-up bonus which they can use once reaching $100 in trading volume.
While some regard regulated exchanges as a positive idea that will bring adoption and trust for the cryptocurrency sector, a part of the community believes that regulatory supervision provides an unnecessary step in the decentralized sector.
The push for a US Exchange
In an attempt to protect US investors from fraudulent assets, the U.S. Securities and Exchange Commission (SEC) is actively pushing for cryptocurrency regulation. The decision to create a separate exchange for the US market may have come from Binance listing IEOs which had a ‘Pump and Dump’ market activity, which left some traders with astonishing returns, while others have lost most of their money.
In June, CEO Changpeng Zhao announced that the company partnered with BAM Trading Services in order to create the US exclusive trading platform, barring US citizens from using the main platform until the 12th September. With headquarters in California, BAM is categorized as a money services business according to the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN).
According to previous announcements, Binance is set to launch an over-the-counter (OTC) trading platform for the Chinese yuan next month. China is believed to be one of the major participants of the crypto market, despite the central government being openly against the notion of digital assets and going as far as to ban trading in September 2017. Because of this, the majority of crypto trading in China is done via OTC platforms.
While Chinese citizens are most likely to continue using private OTC channels for buying Bitcoin, we still have a month to see the level of adoption for Binance’s newest platform.