Is Binance Legal in the US? 2024 Guide to Regulations & Safe Trading

Understanding Binance’s Legal Status in the United States

Binance, the world’s largest cryptocurrency exchange by trading volume, operates under complex regulatory scrutiny in the United States. While Binance.com (the global platform) is not legally accessible to U.S. residents, its dedicated U.S. counterpart – Binance.US – operates as a fully regulated, separate entity compliant with federal and state laws. This distinction is critical for American traders navigating crypto regulations. Following a landmark $4.3 billion settlement with the U.S. Department of Justice and SEC in 2023, Binance.com ceased serving U.S. customers directly, making Binance.US the only legal avenue for Americans.

Binance.US vs. Global Binance: Key Differences

Binance.US functions as an independent platform tailored for U.S. regulatory compliance:

• Licensing: Registered as a Money Services Business (MSB) with FinCEN and operates under state-specific licenses.
• Supported Assets: Offers 150+ cryptocurrencies (vs. 350+ on global Binance), excluding high-risk tokens like leveraged tokens.
• Features: No futures/derivatives trading, reduced staking options, and simplified interface to meet U.S. standards.
• Geographic Restrictions: Unavailable in 7 states including New York, Texas, and Vermont due to licensing limitations.

Regulatory Challenges: The 2023 Turning Point

In November 2023, Binance admitted to violating U.S. anti-money laundering (AML) and sanctions laws. Key outcomes included:

• A historic $4.3 billion settlement with DOJ, CFTC, and Treasury.
• Founder Changpeng Zhao (CZ) stepping down as CEO and pleading guilty to AML failures.
• Enhanced compliance monitoring for Binance.US via third-party auditors.
• Strict segregation of U.S. user data from global operations.

This reshaped Binance’s U.S. strategy, reinforcing Binance.US as the sole legal gateway.

How to Legally Use Binance in the U.S. (2024 Guidelines)

American traders can access Binance.US by following these steps:

1. Verify residency in one of the 43 supported states (excludes NY, TX, VT, HI, ID, LA, NC).
2. Complete KYC identity verification with government ID and proof of address.
3. Link a U.S. bank account or debit card for deposits/withdrawals.
4. Enable two-factor authentication (2FA) for security.
5. Trade only approved assets – avoid VPNs to access global Binance, which violates terms and federal law.

Top Legal Alternatives to Binance for U.S. Traders

If Binance.US isn’t available in your state or lacks desired features, consider these fully regulated exchanges:

• Coinbase: NYDFS-licensed, supports 200+ coins, publicly traded (NASDAQ: COIN).
• Kraken: Available in 48 states, offers advanced trading tools and staking.
• Gemini: New York Trust Charter, emphasizes security and insurance.
• eToro: Social trading features, supports stocks and crypto.
• Crypto.com: Wide asset selection, Visa card rewards program.

FAQ: Binance Legality in the U.S.

Is Binance banned in the US?

Binance.com (global) is banned for U.S. users. Binance.US remains legal and operational in 43 states under U.S. regulations.

Can I use a VPN to access Binance.com from the US?

No. Using a VPN violates Binance.com’s terms and U.S. financial regulations. It risks account termination, fund seizure, or legal action.

What states is Binance.US available in?

Binance.US operates in 43 states, excluding New York, Texas, Vermont, Hawaii, Idaho, Louisiana, and North Carolina due to licensing barriers.

Is Binance.US safe after the 2023 settlement?

Yes, with caveats. Binance.US maintains separate operations, holds user assets 1:1, and undergoes strict audits. However, regulatory oversight remains heightened.

What happened to Binance founder Changpeng Zhao?

CZ pleaded guilty to AML violations, resigned as CEO, and faces sentencing (up to 18 months). He’s barred from Binance operations but retains ownership.

Can US citizens trade futures on Binance?

No. Binance.US doesn’t offer futures or derivatives to comply with U.S. regulations. Only spot trading is permitted.