Coin Security will stop serving US users, but they have opened an exchange for them.

Today, Binance, the currency exchange with the largest volume of transactions, announced that it will stop serving US personal and corporate customers on Binance.com.

The currency has updated its terms of use, which mentions that the company “cannot provide services to US citizens”. After September 12, users who do not meet the Binance Terms of Use will continue to have access to their wallets and funds, but will not be able to trade or top up on Binance.com.

Crypto

Due to the special nature of cryptocurrency regulation in the United States, almost all large exchanges are subject to the terms of use, restricting access to users in countries such as the United States and jurisdictions.

Coin Ann announced yesterday that it will launch an independent legal currency exchange to provide fully compliant services to the US market.

Zhao Changpeng, CEO of the currency security company, is optimistic about this incident. He said on Twitter:

“Some short-term pains may be necessary for long-term gains. We always strive to turn every short-term pain into a long-term harvest.”

Affected by the policy, the currency security stopped serving US users.

According to The Block, about 20% of the monthly traffic is from US customers, and this percentage has been halved since the beginning of 2018.

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(Source of currency flow in the first half of 2019, source: The Block )

Unauthenticated US users are still likely to bypass these restrictions via VPN and trade on the currency. Currently, the currency allows two bitcoins to be withdrawn without any verification, despite the latest policy recommendations "Some users may need to provide evidence that their account registration process complies with the terms of use of the currency."

It is worth noting that two weeks ago, the Decentralized Exchange (DEX), which had users exposed to the currency, also plans to block more than 20 countries, including the United States, after July.

Previously, both Bitfinex and BitMEX began shielding US customers at the end of 2017 because the regulatory environment was challenging. Firecoin also licensed its technology and brand to HBUS, a US-based US company (later renamed Firecoin).

Regarding the reasons why the currency was not registered in the United States, Zhao Changpeng said in an interview today:

“There is some confusion about why Coin’s is not registered in the US. Coin’s is a very early technology start-up. Since we launched our service less than two years ago, we are faced with a variety of Changing regulatory issues. We have been working hard to improve our regulatory knowledge and capabilities. Our goal is to provide services in the most compliant and secure manner in every new market we plan to enter."

US-based independent exchange Binance US

In order to retain a large US user base, Coin Ann announced the establishment of Binance US yesterday. This new cryptocurrency trading platform is for US users and was created in collaboration with BAM Trading Services. The platform will be operated by BAM while using Binance's wallet and matching engine technology.

The specific launch time of the exchange has not been announced.

The move will be the first official entry into the US market, especially considering that it will subsequently stop serving US users in the user terms.

Zhao Changpeng said:

“We are pleased to have finally launched Binance US and brought the security, speed and mobility of Binance.com to North America.”

“Binance US will be responsible for our local partner BAM and will serve the US market in full compliance.”

Although Coin's main station only provides currency transactions, it has established legal currency exchanges in Uganda, Singapore and Jersey, all of which only support Bitcoin, Ethereum and BNB transactions. The company also plans to establish two currency exchanges on each continent.

Mysterious partner of coin security

The background of BAM is still unclear. The company is registered as a money services company (MSB) in the US Treasury's Financial Crimes Enforcement Network (FinCEN), located in San Francisco, California.

However, the registration document states that “FinCEN did not verify the information submitted by this MSB” and the document “only reflects information provided directly to the regulatory body”.

According to the MSB registration terms, the company has only registered operations in California.

BAM appears to be working with Koi Compliance, the "Comprehensive Management Solutions" division of cryptocurrency OTC dealer Koi Trading. Coin Security Lab invested $3 million in Koi Trading on January 24.

In a press release, a "BAM company representative" who asked not to be named said, "It is my pleasure to work with the company… and use its first-class security technology."

“We are committed to providing a safe, compatible platform and begin a productive partnership with the currency.”