Is Binance Legal in the US? A Regulatory Breakdown
Binance, the world’s largest cryptocurrency exchange by trading volume, has faced significant scrutiny in the United States. While Binance operates globally, its availability and legality in the U.S. depend on which platform you use: Binance.com (the international platform) or Binance.US (its U.S.-specific service). Here’s what you need to know about its legal status.
Binance.com vs. Binance.US: Key Differences
To comply with U.S. regulations, Binance launched Binance.US in 2019 as a separate platform for American users. Here’s how they differ:
- Availability: Binance.com blocks U.S. users, while Binance.US serves 46 states (excludes Hawaii, New York, Texas, and Vermont).
- Regulatory Compliance: Binance.US adheres to U.S. AML/KYC laws and partners with regulated third-party custodians.
- Features: Binance.US offers fewer cryptocurrencies and services compared to the global platform.
Why Binance.com Isn’t Legal for U.S. Users
In 2023, the U.S. Securities and Exchange Commission (SEC) sued Binance and its founder, Changpeng Zhao, for allegedly operating an unregistered securities exchange and violating investor protection laws. The Commodity Futures Trading Commission (CFTC) also filed charges for illegal derivatives trading. These actions forced Binance to restrict U.S. access to Binance.com.
How to Use Binance Legally in the U.S.
Follow these steps to trade crypto compliantly:
- Sign up for Binance.US with a valid ID and Social Security Number.
- Verify your residency in a supported state.
- Avoid VPNs to access Binance.com, as this violates terms of service.
- Stay updated on regulatory changes affecting Binance.US.
FAQ: Is Binance Legal in the US?
1. Can U.S. citizens use Binance.com?
No. Binance.com blocks U.S. IP addresses and requires KYC checks that exclude American residents.
2. Is Binance.US safe?
Binance.US is licensed in most states and uses cold storage for funds, but it lacks FDIC insurance. Monitor regulatory updates due to ongoing legal challenges.
3. What happens if I use Binance.com with a VPN?
This violates Binance’s terms and U.S. regulations, risking account suspension or legal action.
4. Which states ban Binance.US?
Hawaii, New York, Texas, and Vermont restrict access due to state-specific crypto laws.
5. Are there alternatives to Binance in the U.S.?
Yes. Coinbase, Kraken, and Gemini are fully regulated U.S.-based exchanges.
Conclusion
While Binance.US remains legal in most states, its parent company’s regulatory battles highlight the importance of using compliant platforms. Always verify local laws and prioritize exchanges with clear U.S. licensing to avoid risks.
