The new-age currency called cryptocurrency is disrupting the current financial ecosystem dominated by fiat currencies such as USD, EUR, GBP, Yen, etc. The penetration of internet services has made digital services accessible to a large section of the population across the world, and the emergence of blockchain technology has propelled the growth of decentralized finance. People are enthusiastic about using cryptocurrency as a medium of exchange and investment. Using cryptocurrencies needs an exchange where they are listed and can be exchanged for fiat money or other cryptocurrencies. A sizable chunk of people uses the Binance crypto exchange to buy, sell, trade, and transfer digital currencies.
Binance.US is one of the subsidiaries of Binance which is exclusively available for U.S. users. In this write up we will discuss what is Finance.US, its pros, and cons, and its features, and take a look at whether its available in all states of the U.S or “Binance banned in the U.S”.
After Binance’s international version banned in the U.S. due to regulatory and compliance issues in 2019, Binance launched its exclusive version called Binance.US for the U.S. market with an office based in the country. The Binance.US has fewer features than the global version and supports limited cryptocurrencies. U.S.-based users can buy, sell and trade over 120 cryptocurrencies Including some of the popular ones such as Bitcoin (BTC), Ethereum (ETH) PAX Gold (PAXG) Harmony (ONE), and Orchid (OXT).
Binance Coin (BNB) is the native crypto coin of the Binance exchange. Which can be used for making payments for platform fees and can be swapped for other digital currencies. Users can start trading on Binance.US with a minimum amount of $10. The platform also offers its user to earn rewards of up to 6.5% by staking their BNB in wallets using currencies including XTZ, VET, ALGO, and ATOM.
Binance.US Available States
Binance.US is available for all U.S.based users except in 6 states. The states where Binance.US is not available are
- New York
Pros and Cons of Binance.US
- Limited trading assets
- Low trading fees
- 25% discount for using Binance Coin (BNB) to pay fees
- Crypto taxation through an online portal
- Lengthy verification process
- Crypto educational resources
- Allows staking to earn rewards
- Easy to navigate the user interface
- Not available in several states of the U.S.
- Minimum trading limit of $10
- Difficult website interface
- No information on security
- Known for repeated regulatory and compliance violations
- Not responsive customer support
- The parent company witnessed a major security breach in 2019
Another important thing that investors and traders consider while choosing a perfect cryptocurrency exchange to start their investment journey is the fee charged by the platform that defines the actual profit of the users. Binance.US offers the lowest trading fees to its U.S customers in the industry. It offers a 25% discount on paying fees using Binance Coin (BNB). For buying and selling cryptocurrencies Binance.US charges a fee of 0.5%.
Is Binance.US Legit?
Is Binance banned in the U.S.? Binance.US is legal to use in the U.S. except in 6 states where its still banned. Before the launch of Binance.US in 2019, its global version was available for all U.S. users. But due to repeated regulatory and compliance issues a complete ban was imposed on its operation. Including the U.S., Binance was subject to investigation in several countries due to compliance violations. After that, the exchange launched its subsidiary Binance.US New York in 2019 with exclusive features for U.S. users.
Why is Binance Banned in the US?
Binance has been investigated several times by U.S. regulatory authorities since it was launched in the U.S., which culminated in a full-fledged ban on the previous version of the exchange in 2019. However soon after the ban, Binance launched its subsidiary Binance.US under a partnership with the Financial Crimes Enforcement Network (FinCEN)-registered BAM Trading Services, in accordance with the country crypto laws, which is since then functional for trading in the country except in 6 states. The exchange was also under the scanner for money laundering and tax fraud in September 2021 which was investigated by the U.S. Justice Department and Internal Revenue Service. Hence the exchange presently not banned in the country.
Is Binance.US Safe for Trading?
The international version of Binance subjected to a large-scale security breach in 2019. In which 7,000 bitcoins worth $40 million were stolen by hackers. Although the company compensated the users by paying the amount equivalent to the bitcoin they lost, the incident made a serious dent in its reputation in terms of security and credibility. To ensure the security of users’ funds, Binance and Binance.US store most of their digital assets in cold storage facilities, which are safer than online hot storage.
The deep insight into “is Binance banned in the U.S.”, its pros and cons, and its features, must help you choose the best crypto exchange that matches your requirement and investment goals. Although Binance.US offers limited trading features as compared to its global version due to compliance issues, the exchange still has an edge over its rivals its terms of the user interface, payment transfer, charges, and withdrawal limits.