The Binance Party Is Over
I guess I should have seen this coming but I didn't think it would be so soon. Binance is creating an exchange in compliance with USA regulation and banning American IP addresses from trading/depositing on the main site.
https://www.theblockcrypto.com/2019/06/14/us-customers-to-be-blocked-from-trading-on-binance-com/
After 90 days, effective on 2019/09/12 [12th September 2019], users who are not in accordance with Binance’s Terms of Use will continue to have access to their wallets and funds, but will no longer be able to trade or deposit on Binance.com.
While the use of a virtual private network could ostensibly allow U.S. users to circumvent the new restrictions, withdrawals for non-verified users remain capped at up to 2 bitcoin (BTC) per 24 hours— worth $16,482 to press time. Sums above this threshold would require users to provide evidence that they are complying with the platform’s Terms of Use.
This was exactly what I was thinking before I even read it. I'll be looking at Tor and VPNs in the future and blogging about them for sure.
Earlier this month, it was reported that the decentralized exchange (DEX) developed by Binance will use geo-blocking to restrict website access to users in 29 countries, including the U.S.
How can it even be called a DEX if you can geo-block 29 countries?
LOL, what a joke. Again, what happens if you use a VPN?
Clearly, the elite is floundering to put a lid on this decentralized revolution. I wonder how effective that's going to be, seeing as using a VPN or Tor gets you around the problem. And that's just the short-term solution. What happens when a real DEX pops up that has real volume? What will you do about that? There is no way to bring a real DEX into compliance. Again, they have to ban the ISPs from allowing us to access it.
But again, it comes back to being able to use VPN and Tor... and then what happens if the Internet itself starts becoming decentralized and the ISP monopolies start getting broken up? There is a tipping point here. One that is very far off in the future, and it will crack and shatter the very fabric of how we do things today.
Maybe some of the money being held on various blockchains really should be pooled for research and development into scaling and accelerating the data and range capabilities of peer to peer networks, or something similar. The technology is there, just not improving fast enough because demand is with the big communication companies.
As long as the ISPs control access to the net, it will be possible to control cryptocurrencies. Mesh networks are necessary to actually decentralize internet access. They're in progress as we discuss. There may be additional mechanisms that allow censorship of currency flows, and I'm continuing to consider the problem.
This is amongst the strongest reasons I do not consider cryptocurrency investment grade. I look greatly forward to the internet adapting to censorship so as to remove the limitation on prudence that precludes counting on cryptocurrency, at least those that aren't already under centralized controls.
Thanks!
The joys of not living in the US. 🙂 Bit true, the DEX part looks a bit awkward with this move. Curious to see how long will it take for true decentralization to happen.
Posted using Partiko Android
A truly decentralized internet without ISPs is an interesting idea. The fact of the matter is, however, that fiber optic cables are owned by ISPs and the use of radio frequencies is tighly regulated. Satellite internet? That most likely would not scale as well as a network of fiber optic cables but serve a niche very well. This is a bit off the wall but couldn't you transmit data with a laser? Oh, it turns out it isn't. Harvard School of Engineering has been working on laser radios for some time.
For reference:
https://www.skydsl.eu/en-FI/Personal/Internet-via-satellite
https://urly.fi/1fkL (Endgadget article)
Tor was cracked.. By german trojans..
Posted using Partiko Android
I m pretty sure they know this too, but they also "have to comply" to get in with the types and amount of customers in the US.
I meant to mention it in the OP, but they don't really care about VPN.
Most people aren't going to use extra privacy stuff, so these regulations are going to apply to the masses. After that they will open the floodgates of FOMO and crypto will go mainstream.
Glad you posted this write-up. I did not notice any direct notification from Binance to me about any of this. They have been my favorite exchange to trade on.
Any recommendations for switching off Binance? I'm trying to decide if I should sell off all my altcoins, or move them to my own wallet addresses (which will incur transaction fees).
I'm not careful or smart enough to use a VPN or TOR to access non-US exchanges. Eventually I'm worried I might slip up, and they will blacklist me from trading or creating an account.
I'm having the same challenge with Bittrex this week. Have to make some quick decisions. Always a very bad thing when waiting for long-term trades to trigger.
Honestly, I don't know how to research the answer I'm looking for. Search results on the subject of any crypto topic is worse than horoscopes.
probably just have to hope for a good dex to pop up. there are a lot of pending projects including one called Blocknet
Well...at least they didn't just suddenly lock everyone out.
They'll likely be pressured into requiring ID to ensure you aren't a US citizen for any use in the future. But...if you just need any ID, it's not like it's hard to figure out a way. There will likely always be ways around it, but for them it's just a numbers game. They just wanna make it hard for anyone to do things they don't like, to discourage it, because people are lazy.
Good article . I wonder what everyone is using for VPN’s these days .
Posted using Partiko iOS
So another exchange making it difficult and costly for U.S. citizens to easily invest in and trade crypto. Rats!
Fortunately it’s for large purchases now...
It’s already difficult because some of the exchange names we hear frequently here haven’t been open to new US customers for over a year.
This is more then just annoying, it costs money by forcing us onto websites that deal with US customers but charging large service fees.
A “real Dex with volume” that would be great.
Point me in their direction, please.