On Nov. 23, Binance began telling some of its users in the US via email that they would have 14 days to withdraw their holdings, failing which their accounts would be locked. The exchange began blocking US users in early Nov. 2020.
- Binance expects its US users to use the American variant of the platform, Binance.US, as the original Binance exchange has no regulatory approval in the country
- In the email, Binance says that it has “noted that [the user] is trying to access Binance” while identifying “as a US person”; this violates the terms of service and will result in a closing of positions and locking of the account in 14 days
- Binance had previously informed its US users about this violation in July 2019
- Binance.US, on the other hand, has regulatory approval in the US, though it does not operate in all states
- US lawmakers have been clamping down on cryptocurrency entities, with derivatives platform BitMEX being the most high profile victim
- Binance has been the subject of controversy after Forbes published a report claiming that it was circumventing US regulation; the exchange firmly denied the report, calling it inaccurate, and has filed a defamation lawsuit against Forbes