New York Attorney General Requesting Info from Binance (and 12 other exchanges)

AS was originally reported by WSJ and bizjournals: https://www.bizjournals.com/newyork/news/2018/04/17/new-york-ag-puts-cryptocurrency-firms-on-notice.html

Schneiderman’s office sent a letter and questionnaire to companies including New York-based Gemini Trust Co. and itBit Trust Co., as well as Bitstamp USA Inc., Payward Inc., Bittrex Inc., Circle Internet Financial Ltd., **Binance Ltd**., Elite Way Developments LLP, Gate Technology Inc., and Huobi Global Ltd.

The important reason why I am highlighting Binance (and to some lesser extend Huobi) is that Binance is a very large foreign company being probed by US regulators because they have US customers — in fact Binance’s own figures report that 33%+ of their users are US based customers so the NY AG fully believes they have regulatory powers over Binance. You can look at all the full questionaire here: https://ag.ny.gov/sites/default/files/virtual_markets_integrity_initiative_questionnaire.pdf

Binance infographic of user distribution: https://imgur.com/a/rhhkp
Last Binance blog post revealing user distribution: https://medium.com/@binance/binance-weekly-report-e16a42c757d2

Why this is important is because it most likely will end up with Binance banning US customers just as all offshore exchanges in the past that received US regulator notices followed closely by the termination/banning of US customers from using their platforms. Before I get a bunch of angry uneducated responses this isn’t mean to be FUD-inducing with a market reaction — plenty of platforms including OKEX, BFX, BitMEX all banned US customers with little to no impact on the overall markets. Be aware that US customers are a massive and expensive regulatory burden on offshore exchanges so much so that most will chose not to do business with US persons.



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