Is Binance Legal in the US? Your Complete 2024 Guide

Is Binance Legal in the United States?

Binance, the world’s largest cryptocurrency exchange by trading volume, operates under strict regulatory constraints in the United States. While Binance.com remains inaccessible to U.S. residents due to regulatory barriers, its compliant subsidiary Binance.US serves American customers legally in most states. This guide breaks down Binance’s complex U.S. legal status, regulatory milestones, and safe alternatives for traders.

What is Binance?

Founded in 2017, Binance rapidly grew into a global crypto powerhouse offering:

• Spot trading for 350+ cryptocurrencies
• Futures and derivatives contracts
• Staking and savings products
• NFT marketplace and Web3 wallet

Its international platform (Binance.com) ceased serving U.S. users in 2019 following regulatory warnings.

Binance’s Legal Status in the U.S.

U.S. residents cannot legally use Binance.com. In 2019, Binance launched Binance.US—a separate, fully regulated platform adhering to U.S. laws:

• Licensing: Operates as a Money Services Business (MSB) registered with FinCEN
• Compliance: Follows state-by-state money transmitter licenses
• Restrictions: Offers fewer coins (120+) and no derivatives trading

In 2023, Binance.com faced a $4.3 billion DOJ settlement for AML violations, but Binance.US remains operational under enhanced oversight.

Regulatory Timeline: Key Events

• 2019: Binance bans U.S. users; launches Binance.US
• 2020: SEC sues Binance.US over staking products
• 2023: DOJ settlement mandates Binance.com’s exit from U.S. markets
• 2024: Binance.US operates in 45 states (excluding NY, TX, VT, HI)

Using Binance.US Safely: 5 Key Considerations

1. Verify your state’s eligibility (restrictions apply in NY/TX)
2. Complete KYC identity verification
3. Enable two-factor authentication (2FA)
4. Review fee structures (0.1% spot trading fee)
5. Withdraw crypto to private wallets for added security

Top 5 Binance Alternatives for U.S. Traders

1. Coinbase: NYDFS-licensed, 250+ coins, publicly traded (NASDAQ: COIN)
2. Kraken: 48-state coverage, advanced trading tools
3. Gemini: Regulated in all 50 states, insured hot wallets
4. Uphold: Multi-asset platform (crypto/stocks/commodities)
5. Crypto.com: 90M users, Visa card rewards program

Frequently Asked Questions (FAQ)

Can I legally use Binance in the U.S.?

Only through Binance.US—the fully regulated U.S. subsidiary. Accessing Binance.com via VPN violates terms of service and U.S. regulations.

Is Binance.US safe?

Yes, with FDIC-insured USD balances (up to $250,000) and SOC 2 compliance. However, crypto assets aren’t FDIC-insured.

Why isn’t Binance.US available in all states?

Due to varying state licensing requirements. New York (BitLicense) and Texas have the strictest regulations.

What happened in Binance’s 2023 legal settlement?

Binance.com admitted to AML/CFT violations, paid $4.3B in fines, and agreed to DOJ monitoring. Binance.US was unaffected.

Can U.S. users trade futures on Binance?

No. Binance.US only offers spot trading. U.S. derivatives trading is restricted to regulated platforms like CME.

Conclusion: Navigating Crypto Legality

While Binance.com remains off-limits, Binance.US provides a legal gateway for American crypto enthusiasts in compliant states. Always verify an exchange’s state licenses, prioritize platforms with robust security protocols, and monitor regulatory updates from the SEC and CFTC. As crypto regulations evolve, staying informed is your best protection.