Binance, one of the biggest exchanges of the world, recently announced that they are closing trade in the US. The users from the US would no longer be able to trade on the platform; however, their wallets and funds wouldn’t face any difference. The shutting down of Binance for the US also opens new areas for the exchange and for the users as the exchange has announced that they would be partnering up with a US-based trading service, BAM, to open a new platform for its users.
Being one of the biggest exchanges in the world, Binance lists a numerous altcoins which aren’t listed on any of the other exchanges.
The platform would be called Binance.us and it would be operated by BAM. CEO of Binance CZ (Changpeng Zhao) stated:
Binance US will be led by our local partner BAM and will serve the U.S. market in full regulatory compliance.
Further expressing the potential of the platform, he stated:
We are excited to finally launch Binance.us and bring the security, speed, and liquidity of Binance.com to North America.
The operatives from BAM also seemed pretty excited to operate in coherence with Binance and through their licence bring the platform to its full potential. A representative from BAM stated:
It is an honor to partner with Binance to launch the U.S. extension of Binance, leveraging its tier-one security and technology in tandem. We are committed to providing a secure and compliant platform, and beginning the start of a fruitful alliance with Binance.
This would naturally limit the access of these altcoins for the users of the United States. Some of the coins, like AE, HOT, LINK, NANO, ONE, VET, and WTC which are only listed on Binance would find no other way to be traded in the US, while other better-performing currencies which are only listed on one other exchange, like ARK, BTT, IOTA, PIVX, and ZIL will see a massive decrease in liquidity and volume. The tweet below shows a detailed explanation of which currencies would suffer based on the exchanges they are listed on:
Here is the breakdown of what coins will still be available (as things stand) to US customers through US compliant exchanges once @binance stop US based trading in September pic.twitter.com/OSawHb9GX6
— Goomba (@remigoomba) June 14, 2019
As explained in a report, Binance will close ties to the US on the 12th of September. With the decrease in liquidity for the currencies mentioned above on this date, the valuations would naturally suffer; however, it is highly likely that other exchanges would list these currencies on their platform which in turn could boost the performance of both the exchange and the currencies. BNB token, which is only listed on eToro at the moment, would also face plunge due to limited access.
The blog clearly states that the new platform will focus on the trading of mainstream cryptocurrencies. Although this means that the currencies mentioned above would still be in danger if not listed on other exchanges, the operations of the new platform are still highly anticipated.
https://t.co/AZwoBOy3iq will provide secure and reliable cryptocurrency trading to users in the United States.
We look forward to opening registrations soon. 🇺🇸 pic.twitter.com/bQ6sctg3FK
— Binance.US (@BinanceAmerica) June 14, 2019