Binance Exchange has launched a clamp down on the various US-based accounts on its platforms, asking the users to withdraw their holdings from the exchange within the next 14 days. As per the Decrypt report, the platform has done so to ensure that US-based traders and investors have no holdings on its exchange as it does not have legal standing in the country.
The company has asked the users to register with the United States-based partner Binance US for carrying out trading activities.
Email Notice To US Based Accounts
The crypto exchange gave a deadline of 14 days to such users to close their active positions and take their funds out, highlighting that after the period, the accounts would be locked. Upon the suspension of the account, the users would not be able to operate it and raise a service desk ticket with the support for further action. The company tracked the US-based accounts based on the Internet Protocol(IP) address.
The users must fill the KYC form while registering for the Binance Platform. However, they can bypass the step by choosing lower daily deposits and withdrawal limits. As per the reports, Binance exchange did not verify the users’ physical locations registering against their IP addresses, which led to a number of US-based accounts creation on the Binance platform.
Earlier this year, Binance announced formally launching its operations in the United States with a dedicated platform, Binance US, being run by partner BAM to serve the US accounts with full regulatory compliance. The company continually reviews and scrutinizes its user accounts to ensure it is complying with legal regulations across the world.
Extending its endeavor to serve customers with full authorization, it has requested the US-based account holders to move to its authorized US-based platform and transfer funds before being blocked.
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