The world’s largest cryptocurrency exchange, Binance, has decided to step on the gas to identify U.S. users.
According to the news offered by Bloomberg, cryptocurrency exchange Binance has asked leading brokers like FalconX and Hidden Road to speed up customer scans in the US.
Following the issues with the U.S. Securities and Exchange Commission (SEC), Binance has avoided serving U.S. customers globally and requested the acceleration of scanning services and the immediate identification of U.S. users to prevent it. Additionally, tighter controls on customer information were requested.
Brokers generally serve institutional investors and can easily identify the country of such investors by accessing their information such as address, nationality, etc.
A Binance spokesperson shared with The Block, “We are fully committed to compliance and are making it transparent to businesses seeking access to market-leading liquidity.”
Following the SEC’s lawsuit against Binance and the record $4.3 billion fine, Binance’s U.S. subsidiary, Binance US, suffered a significant loss. Consequently, the exchange saw 75% decrease in revenue.
However, contrary to these U.S.-based issues, Binance Global has strengthened after Changpeng Zhao’s resignation. According to DeFiLlama data, Binance’s global total value locked (TVL) has risen from $67 billion to $112.5 billion since November.
