IS BINANCE US STILL SAFE ?

I strongly suggest you to move your funds out from Binance US.

Risk is too high for keeping any money on it anymore. Apparently SEC is planning to FREEZE all assets from Binance US. People say it’s impossible but these guys have the power to do everything they want.

I don’t want you to panic. Far from it. I want you all to be safe. Unless there is a major issue with Binance at resolution, most of the time this just results in fines. They likely have to pay something and then decide if they even want to operate in the USA ever again.

In the event of an escalation it’s possible withdrawals in and out to Binance US will be stopped. In a day your funds might be out of reach. For months. Or even Indefinitely.

We don’t know how the situation will end. Maybe nothing will happen. HOWEVER YOU ARE PREPARED AND SAFE. THAT IS ALL THAT MATTERS.

Remember: This only applies to US residents. Internationally it will be less impactful than most people think. Su Europe, Asia and rest are safe. The USA is becoming stricter with regulation which means the growth is going to be outside the USA.

WHAT ABOUT COINBASE?

Binance US might lose all of its customers and the people interested in crypto will be forced into other US platforms. Coinbase will likely take a large portion of this customer base.

I expect Coinbase to be let off only with a fine. We know that BitMex had to pay $100M in 2021 for their illegal activities. Source: https://www.cftc.gov/PressRoom/PressReleases/8412-21?utm_source=substack&utm_medium=email Even if the fine it’s above this value for Coinbase, they still have about $5B in cash and $3.4B in debt. Therefore, they have a ton of money to use in case they are enforced to pay the fine.

Coinbase is too big to fail. Too many off and on ramps for institutional flows are happening on there to close it. I think the reaction is made “serious” just to scare small investors out. It’s just smoke and mirrors.

Conclusion

1.Volume will drop off next months.

Even if people are using Binance US right now, the number of transactions will decline due to the headlines.

2.Short term we are going to see more regulatory pressure taking place. Especially with transactions between banks and crypto exchanges.

You’re already seeing big banks like Chase become hard to work with. Similar things are happening now in Australia.

I strongly recommend you separating your accounts (one for yourself and another only for crypto) in order to not be affected by it.