Binance, Exchanges

Why Can’t I Use Binance US in New York?

Binance, one of the world’s largest cryptocurrency exchanges by trading volume, has been inaccessible to users in New York since early 2019. The reason? Binance is not licensed to operate in the state.

The New York State Department of Financial Services (NYDFS) requires crypto exchanges doing business in the state to obtain a “BitLicense” – a special type of business license that subject companies to strict anti-money laundering (AML) and know-your-customer (KYC) requirements.

Binance has applied for a BitLicense, but has yet to receive approval from NYDFS. In the meantime, the exchange has been blocked by internet service providers in the state.

The NYDFS has only granted a handful of BitLicenses since the application process was opened in 2015. The process is notoriously lengthy and difficult, with many companies waiting years for approval.

NOTE: WARNING: It is illegal to use Binance US in New York. Binance US is not licensed or approved by the New York State Department of Financial Services, and any attempt to use it in New York may result in civil or criminal penalties.

Binance is not the only crypto exchange to be blocked in New York. Kraken, another major exchange, also does not have a BitLicense and is not accessible in the state.

The NYDFS has said that it is committed to working with exchanges to help them comply with its regulations. However, the agency has also shown that it is willing to take enforcement action against those who flout its rules.

In 2018, the NYDFS fined BTC-e, a now-defunct crypto exchange, $300 million for operating without a license and violating anti-money laundering lAWS.

The NYDFS’s tough stance on regulation has made it difficult for many exchanges to do business in the state. However, some believe that this is necessary to protect consumers and prevent crime.

The bottom line is that Binance cannot operate in New York until it obtains a BitLicense from the NYDFS. The process of applying for and obtaining this license is lengthy and difficult, so it may be some time before Binance is accessible again in the state.

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