Crypto exchanges in the United States have been on edge for most of the year as government and regulators in the country show a negative attitude towards digital assets.
There has been a lot of uncertainty regarding the direction which the crypto industry would have to take, especially after Facebook’s announcement of Libra increased the levels of scrutiny cryptocurrencies are under in the country.
Regulators in the United States have barred some exchanges from trading with American clients due to issues of compliance. Some exchanges, such as Binance, have resorted to creating a different exchange for their clients in the United States.
Binance’s exchange is popular for its extensive offering of altcoins, and American investors were tentative about being moved to an exchange that may be different from the one they’re used to.
There was uncertainty about whether or not some of the altcoins would be available on the new exchange and there were concerns about whether Bitcoin and Ethereum would also be available.
Offerings on U.S only exchange, doubt over Bitcoin and Ethereum
As the pressure from regulators in America intensifies, Binance has set out to create an exchange that will be available to its American clients. American investors will soon be unable to trade on Binance’s flagship platform as the exchange company tries to stay on the right side of regulations.
Binance has engaged with a yet to be named FinCEN registered company, and they have partnered with the company to create a US-focused exchange.
It is clear that Binance is keen on keeping its American client base, and they are running around to put this exchange together. The American market comes with the most significant investor pool, and Binance must have these investors on its platform in one way or another.
Binance will be looking to encourage investors to buy Binance coin (BNB) by providing an attractive product.
A list of digital assets which Binance is evaluating has been published. Binance is considering a variety of crypto assets as replacements for its altcoin offering. The published list has given investors a bit if reassurance regarding concerns that funds on Binance could be lost.
The list of crypto assets being considered includes like ATOM, ADA, BCHABC, BAT, BTC, BNB, EOS, DASH, ETH, ETC, IOTA, HOT, LOOM, LINK, MANA, LTC, NEO, NANO, REP, PAX, RVN, USDC, TUSD, USDT, WAVES, VET, XRP, XLM, ZRX, and ZIL.
The exchange is making use of a Digital Asset Risk Assessment Framework to assess the potential of the many coins that are in existence. The framework helps exchanges determine which coins are worth offering to investors.
Bitcoin and Ethereum are part of the list of coins being evaluated by Binance despite the two being the leading cryptocurrencies on the market. This has created doubt regarding whether they will be offered on the US-centric exchange Binance is working on.
The bottom line
US investors will have to wait a little longer to see which digital assets Binance and its an unnamed partner will offer them. Players in the American crypto community are feeling regulatory pressure, and the negative perception held by the US government seems to be worsening.