These Crypto Assets Might Be Listed on Binance US Exchange
Binance, the largest cryptocurrency exchange by volume, has recently adjusted its terms of service to exclude US customers after September 12th while announcing the preparation for launching a separate dedicated trading platform in collaboration with its local partner, San Francisco based BAM Trading Services Inc. to which Binance has licensed its name and technology (de facto authorizing it to run Binance’s operations in the US). The new Binance US exchange (having approved registration with FinCEN since June 11) will be fully compliant with the US’s regulatory framework.
The move comes after exchanges such as Poloniex, BitMEX and Bitfinex went on blocking US customers in the past year while regulators are beginning to slowly crack down on many suspicious activities and dubious/fraudulent enterprises.
As such, the Binance US exchange has adopted a Digital Asset Risk Assessment Framework for ensuring legal compliance, according to the criteria of which it will select its listings of digital crypto assets and blockchain projects to be traded.
The selection criteria of the new Binance US exchange
- Determining whether trading the candidate asset will affect the capacity of the Binance US exchange for jurisdictional compliance and legal requirements, including AML/CFT and securities laws and their associated regulations (so, no privacy coins).
- Whether the candidate asset’s core team has a clear strategy and vision with potential for solving a real-world problems (providing new angles and perspectives or opening up new frontiers for experimentation and research, etc.)
- Whether the candidate asset’s community has established a culture of good governance and has a healthy track record of making reasonable compromises and reaching social consensus in a pragmatic manner in order to move the project forward and how well the core team of the project interacts with stake holders and community members.
- Whether the candidate asset’s market supply and demand are reasonably fair in meeting the quantitative standards of the new Binance US exchange.
- Whether the candidate asset is technologically secure to transact and/or realistic to build (i.e., has solid technical fundamentals that adequately correspond to its intended purpose and end goals).
These crypto assets are assessed to be listed
The process is to select established quality projects (sorry TRON) with the intention of avoiding the drama and shenanigans that seems to all too often be endemic to the crypto scene. From the above, BTC, ADA, HOT, WAVES, IOTA, NANO and ETH are in all likelihood sure to be picked (from the perspective of regulatory compliance, bringing value to the table and facilitating innovation in their respective domains), while assets such as REP, with its application in decentralized prediction markets (which could be framed as a form of gambling), might not pass the legal and regulatory criteria.
Needless to say, many of the smaller, less liquid tokens (especially ICOs) traded on the main platform will be unavailable on the new Binance US exchange.