The Real Reason Binance Is Banned in the USA

Ever wondered why Binance, the world’s largest cryptocurrency exchange, is unavailable in the United States? While you can access a limited version called Binance.US, the global platform with its massive trading volume and hundreds of coins remains off-limits. In this post, we uncover the real reasons Binance is banned in the USA and what it means for American crypto users.

Watch: Why Binance is Absent in the U.S.

Introduction

Binance is so massive that its daily trading volume can dwarf what the New York Stock Exchange handles in an entire month. But if you’re in the United States and try to access it, you’re blocked. Instead, you’re redirected to Binance.US—a version with fewer coins, higher fees, and limited features. Today, we’re exposing the real reasons Binance left the USA.

The Turning Point: A Billion-Dollar Penalty

The story comes down to one man: Binance’s founder and CEO. When he walked into a U.S. courtroom, signed a settlement, and resigned, it marked the end of Binance’s global access for Americans. This followed a $4.5 billion lawsuit that changed everything for U.S. crypto traders.

How Binance Got Here

Founded in 2017, Binance became a “global nomad,” moving to crypto-friendly countries. By 2019, it had surpassed Coinbase, Kraken, and FTX combined. But secretly, millions of U.S. traders were still using it. Once regulators found out, the crackdown began.

The Lawsuits That Changed Everything

In 2023, the U.S. government sued Binance for violating financial regulations. Internal chats leaked, showing employees joking about compliance weaknesses. Soon after, a court froze Binance’s U.S. assets, forcing the exchange to ban American users from the global site.

Geofencing: The Digital Wall

Binance enforces the ban with sophisticated geofencing technology. The app checks your location instantly—if you’re in the U.S., you’re blocked. Even VPNs can’t guarantee access, as mismatches can freeze your account. It’s one of the toughest geo-restrictions in crypto.

The Birth of Binance.US

Binance.US was created to comply with U.S. rules, but compared to the global platform, it feels limited and expensive. For many Americans, it’s a shadow of the real Binance.

Why Not Just Comply?

Complying with U.S. rules would require registering hundreds of assets in 50 different states—a near-impossible legal challenge. Each new coin risked being labeled an unregistered security. The regulatory maze made full compliance unsustainable.

The Strategy: Protecting the Global Empire

Although the U.S. represents about 25% of the global crypto market, Binance calculated that compliance costs and fines would exceed $3 billion annually. So, they sacrificed the U.S. to secure dominance over the other 75% of the market.

Impact on American Users

American traders now face higher fees, fewer coins, and constant restrictions. Some attempt VPN access, but risk frozen accounts. Customer support legally cannot help anyone suspected of being in the U.S., making the experience frustrating.

State-Level Bans

Even within Binance.US, certain states block access. New York, Texas, Hawaii, and others prohibit the platform outright, while several states impose strict withdrawal rules. This patchwork of regulations leaves millions of Americans excluded from global crypto markets.

The Long Game

Binance appears to be waiting for federal crypto regulation in the U.S. The exchange spends over $200 million annually on compliance, staying prepared for the day a clear law is passed. Once that happens, Binance could attempt a full comeback in America.

Conclusion

The absence of Binance from the U.S. isn’t just about lawsuits or fines. It’s a strategic business decision. By pulling back, Binance protected its global empire while preparing for a possible return once regulations stabilize. For now, American traders are left with Binance.US—a smaller, limited platform, until the crypto landscape in the U.S. changes.