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Do you live in the United States and you’re wondering if you can use Binance?
What if you live in New York or Texas – can you use Binance there?
If you are newer to crypto, there is understandably a lot of confusion about if you can use Binance in the United States, and if so, how?
In the post below, I try to answer some of these questions.
In This Post:
- Is Binance Banned In the US?
- Why is Binance Banned in the US?
- What States Can Use Binance US?
- Is Binance US available in New York?
- Why Is Binance Us Not Available In Texas?
- Does Binance US Require KYC?
- How to Access Binance in the United States
- How to Withdraw Funds from Binance
- Wrapping Up
- References
Is Binance Banned In the US?
Binance is legally banned in the United States. However, there are no restrictions for U.S citizens who live in other states or countries to access Binance’s services on their servers. Binance partnered with a U.S branch called “Binance US.”
This company provided similar trading features and was created because of regulatory issues that prevented it from being accessible to all Americans before these limitations were lifted by the previous president Trump.
In contrast to its illegal parent company, BNBUS’ service remains unrestricted by any law that would tie it up with a particular geographical location or regulate its trading activity.
Binance.US is a licensed money transmitter that operates under the laws of the state of Washington. U.S. citizens can only use Binance.US to trade, but the company is actively working on obtaining the necessary licenses to offer its services to U.S. residents.
Binance is the most easily accessible crypto exchange for many users. It has an intuitive user interface that allows anyone to trade quickly and easily. The exchange provides a wide variety of coins, and it is ranked as the largest exchange in the world by volume.
The company has its token called BNB (Binance Coin), which can be used to pay for trading fees. You can also use other tokens to pay your fees, including Bitcoin, Ethereum, Binance Coin, Dogecoin, and Litecoin. This makes it easier for you to trade different coins without converting your funds back into fiat currency first.
The exchange is known as one of the most secure in the industry. It has multiple security features, including 2-factor authentication, email confirmation, and SMS confirmations.
In addition to this, Binance also offers a system called “Secure Asset Fund for Users (SAFU),” a sort of insurance fund that protects users against any losses incurred because of unusual activity on the exchange.
Binance has earned its reputation as one of the best exchanges globally due to its user-friendly interface and its ability to provide better customer service than many other exchanges. The company also regularly offers discounted trading fees for users who pay with BNB tokens.
Why is Binance Banned in the US?
U.S. citizens were banned from using Binance in 2019. Because of this, the company partnered with a branch called Binance.US to provide services for U.S. customers.
The exchange initiated its block on U.S. IP addresses on March 19, 2019, in compliance with a regulatory warning issued by the U.S. Securities and Exchange Commission in March of that year.
As part of the U.S. Securities and Exchange Commission (SEC) announcement, Binance was given 90 days to comply with its rules.
The deadline for this compliance passed without a response from Binance, and as a result, the exchange was blocked for all U.S. residents.
Binance’s response to the SEC’s announcement was swift and unequivocal: “We are currently exploring the possibility of working with a U.S. partner Exchange. In the meantime, U.S. citizens may purchase Bitcoin on our partner exchange”
This is an entirely different exchange that U.S. residents can use just as they would any other Bitcoin exchange or trading platform, and it currently operates outside regulatory compliance laws in America – meaning there are no laws yet that regulate cryptocurrency exchanges and activities based on blockchain technology like crypto assets, security tokens, etc.
Binance.US offers lower fees than many other cryptocurrency exchanges, but we’d recommend paying a bit more for added transparency. This trading platform only supports Bitcoin (BTC) and Ethereum (ETH) trades, but you can fund your account using USD or EUR bank transfers or credit cards such as Visa or MasterCard.
You can also purchase crypto assets directly from the exchange with fiat currency via wire transfer – although this feature is only available to users in select countries like the US, Canada, and Australia.
Binance.US was also under investigation by the U.S. government for tax fraud, money laundering, and insider trading as recently as September 2021, according to reporting by Bloomberg.
That level of scrutiny was recently extended to Binance.US, which Binance has referred to as a U.S. partner. The Securities and Exchange Commission is currently investigating the relationships between Binance.US and two firms owned by Binance founder Changpeng Zhao, the Wall Street Journal reported.
The SEC subpoenaed both Zhao’s firm Beiji Technology Co Ltd, and another company called Beijing Changpeng Zhao Network Technology Ltd., which Zhao’s wife, Zhang Jingjing, owns, Bloomberg reported. It’s unclear why the SEC is investigating these companies, but Changpeng Zhao has been a vocal advocate of blockchain technology and cryptocurrency.
The exchange has been operating for over 2 years now, and there are no reports of the exchange being involved in any suspicious activities. Binance.US offers lower fees than many other cryptocurrency exchanges, but we’d recommend paying a bit more for added transparency.
This trading platform only supports Bitcoin (BTC) and Ethereum (ETH) trades, but you can fund your account using USD or EUR bank transfers or credit cards such as Visa or MasterCard. You can also purchase crypto assets directly from the exchange with fiat currency via wire transfer – although this feature is only available to users in select countries like the US, Canada, and Australia.
What States Can Use Binance US?
Binance.US, a licensed crypto-to-crypto exchange operating in the United States, announced the expansion of new trading pairs and availability in 45 states. Users in the remaining 5 states (Hawaii, Idaho, New York, Texas, and Vermont) will soon be able to trade on Binance.US.
This is a significant development for the US crypto market, which has been underserved for years. Binance.US fills a major void in the US market and will enable more people to access the global exchange.
The company’s co-CEO, Bill Khaffif, said that the company intends to expand to all 50 states in the near future. According to Khaffif, Binance.US hopes to work with regulators to expand access to the service in states where the company cannot operate currently.
Currently, you can use Binance.US to buy Bitcoin, Ethereum, Tether, and TrueUSD with USD. Binance.US has its own Trust Grade, which indicates the level of risk of using the service. Trust Grade goes from 1 to 5, with 5 being the highest. Trust Grade 1 is reserved for Blockchain-verified customers only.
These states have been excluded from the list due to regulatory reasons. The company is working with local authorities to enable services in these states as soon as possible. Binance.US is 100% compliant with the regulations and rules of each state.
Company representatives met with regulators in each state to help expedite expansion to new markets. Thanks to regulatory compliance and a thorough vetting process, Binance.US is poised to become a premier crypto exchange in the U.S. market.
The company has announced that it will allow customers to withdraw up to $10,000 worth of crypto assets per day.
To use Binance, you need to register an account. This can be done by providing your email address and creating a password. You will then be sent a link via email to activate your account. Once you have activated your account, you are ready to start trading.
Binance has a very wide variety of coins available to trade. There are currently more than 100 different cryptocurrencies available for trade. Many of these are lesser-known altcoins, but there is a good selection of the top 10-20 coins.
Is Binance US available in New York?
No, Binance.US is not available in New York.
Binance is an international cryptocurrency exchange operating since 2017 and currently serves customers in 190 countries and regions. Binance is the world’s largest cryptocurrency exchange by trading volume and was founded by Changpeng Zhao.
The exchange supports several languages, including English, Japanese, Korean, Chinese (Simplified), French, Spanish and Russian.
Binance’s headquarters are located in Hong Kong, with operations in Singapore and Japan. The company has offices throughout Southeast Asia and North America to fulfill customer demand in those areas.
Binance’s U.S.-based platform currently has a market share of over 50% of the global cryptocurrency exchange market at writing, with Binance itself being ranked as the world’s largest cryptocurrency exchange by trading volume.
In October 2018, Binance launched Binance Chain, an ERC20 token that supports cross-chain transfers between Ethereum and Bitcoin blockchains, which was created to facilitate faster transactions on the Ethereum network. The project achieved its first live cross-chain transaction in November 2018, with subsequent live transactions occurring every month.
In November 2018, Binance launched its fiat-to-crypto exchange in the U.S., which offers a trading pair with the U.S. Dollar (USD). The company also launched its crypto-to-crypto exchange in the U.S., which supports BTC and ETH trading pairs and USDT trading pairs with USDT backed by Tether (USDT).
Binance uses an automated system to manage its user’s funds and for all withdrawals, making it one of the safest exchanges in existence. It does not hold users’ private keys and has no access to users’ funds. Binance has implemented a 5-digit pin code for all withdrawals to enhance security further.
Why Is Binance Us Not Available In Texas?
As of March 2021, Binance is available to customers living in other states, excluding Texas. This decision was made because US regulations require new customer information to be collected and recorded by those who do business with them- such as Binance US.
The SEC temporarily suspended Binance.us in Texas. Binance.US was established in New York, and the SEC has no jurisdiction in that state. Binance.US is a separate entity from Binance, based in Hong Kong, China, and has offices in Japan, Korea, and Singapore.
The two companies have no relationship with each other except that they share the same name and are both listed on Coinmarketcap and the same order book and trading platform (Binance).
Binance is not available in Texas because Binance was sued by the SEC and was forced to move its headquarters out of the U.S. They have since moved back into the U.S. but are still under investigation for securities fraud, money laundering, and insider trading as recently as September 2021, according to reporting by Bloomberg.
The SEC has asked Binance to provide information about its operations, ownership, and funding sources. The agency has requested that Binance provide documents including bank account numbers, information about its owners and investors, business records such as contracts with customers and suppliers, and documents related to stock sales or purchases of its stock since 2017.”
The Texas Securities Board has no jurisdiction over Binance or Binance.us, located outside of Texas in New York State. The SEC does not have jurisdiction to regulate digital assets or exchanges outside the United States either, so it is unclear why they are targeting this specific exchange (Binance).
The Texas Department of Banking is currently working with the Texas Department of Insurance to develop a blacklist of unlicensed cryptocurrency exchanges. As part of this process, they have issued a cease and desist letter to Binance.US and are seeking information on the company’s operations and financial status.
We recommend that you pay close attention to this issue as it may indicate that your state plans on taking action against cryptocurrency exchanges.
Does Binance US Require KYC?
Binance.US requires KYC (Know-Your-Customer) for all users, even if you use a Binance.US referral link to sign up.
The exact requirements of Binance.US KYC are not publicly available, but the company has previously said that it requires two forms of identification and proof of residence in the United States.
Binance is one of several cryptocurrency exchanges that do not provide information about its website’s terms and conditions or privacy policies. In addition, Binance does not publish information about the steps it takes to protect users’ data, including whether it is required to obtain consent from users before sharing their data with third parties like advertising companies.
Binance doesn’t mention any specific requirements for KYC documentation in its terms and conditions or privacy policy. The only requirement is to be over 18 years old and provide a valid email address for verification purposes.
The company does warn users about sharing personal financial information with third parties and says they should always check the privacy policy of any third party they share their personal information with before doing so.
In its announcement, Binance said the change was necessary to fight money laundering and protect its users. The exchange said that only customers who have completed the new KYC process would be able to withdraw funds from their accounts.
Binance said that this move was due to the increase in government regulations and compliance requirements across the industry. With KYC in place, the exchange said it would increase transparency and accountability for all users.
Additionally, Binance said that it would soon be adding a new feature: a verifiable email system for the exchange. In a post on Reddit, the exchange said that it had been working on this feature for some time and would launch in early September.
The email system would allow users to reset their login credentials in the event of a lost phone or stolen account by clicking a link in an email.
How to Access Binance in the United States
So, you want access to Binance from the US? To do this, follow these steps.
First off, get a VPN. I recommend ExpressVPN because of its many servers outside of US borders.
Next up, connect to any European server (or whichever one is found more open than others). Afterward, create an account with your new email address and password by hovering over “Register” at the top right corner of the page and filling out all fields related information when prompted next screen that pops up, like name/username & security questions, etc.
Do not forget to activate 2-factor authentication, which is available under the “Security Center” tab on the homepage, as well as signup for a secondary wallet via Settings – Account – Subscriptions, where you can choose either “Exchange Wallet” or “ETC Wallet.” Lastly, start trading on Binance.
Keep in mind that this is a one-time process. Once you set up your VPN, you can keep using it as long as you like. The best part about a VPN is that you can use it on your computer, tablet, or smartphone. Go to Binance.com and set up an account. Activate 2-factor authentication for added security. Get a secondary wallet – we recommend the open-source Über.
These steps should work for most people, but if you run into any problems with the process above, feel free to leave a comment below. Additionally, if you found this post helpful and would like to see more in the future, please give it a vote.
Binance is available to users through a partnership between Binance and Binance. U.S. Currently, Binance.US is only open to residents of the U.S., but Binance has said it plans to allow users from other countries in the future.
Users can access Binance directly through its website or third-party services like Coinbase and Gemini.
How to Withdraw Funds from Binance
Like other cryptocurrency exchanges, users can withdraw funds from Binance once they have verified their identity. They must first withdraw their funds via bank transfer (in USD) or cryptocurrency (in BTC, ETH, or BNB).
Once the withdrawal is complete and approved, users receive a confirmation email that shows their withdrawal status.
Wrapping Up
Binance is an easy way to get started with cryptocurrency trading for users in the United States. The exchange is safe and secure, has low fees, and allows users to buy Bitcoin, Ethereum (ETH), Ripple (XRP), ETC, and more.
Binance has been a significant player in the cryptocurrency industry since its launch in 2017. It continues to grow by adding new features and expanding to new countries worldwide. If you’re looking for a secure place to trade your favorite cryptocurrencies while getting the best price possible, Binance is a good choice.
Withdrawing funds from Binance can be a little confusing, but that’s only because it’s a new market. The exchange is still in its infancy and is likely to change over time.
Users should use this post to get started with buying and selling cryptocurrency on Binance. If you have any questions about how to use Binance or other cryptocurrency exchanges in general, feel free to leave a comment below.
References
- https://time.com/nextadvisor/investing/cryptocurrency/binance-us-review/#:~:text=In%202019%2C%20Binance%20was%20banned,available%20in%20all%20U.S.%20states
- https://coinmarketcap.com/alexandria/article/binance-expands-kyc-requirements-to-include-government-issued-id
- https://www.vpnmentor.com/blog/how-to-access-binance-from-us/
