U.S.-based investors, you only have one more day with Binance. The deadline for U.S-based investors to end trading and using Binance and its services is September 12. As a result, there might be some disruption to the market, the largest portion of traders come from the U.S. and they are all about to be cut off from a significant portion of the Altcoin market.
In order to comply with global regulations and avoid the perils of the U.S. regulatory system, Binance announced that it would soon be blocking U.S.-based investors from its platform.
This has been a rough decision for Binance, ever since the announcement, the crypto market for Altcoins has taken a serious hit. The uncertainty surrounding the assets, especially with the BTC stresses to pass its recent price wall and the lack of buy pressure has meant the value of many Altcoins falling. At this point in 2019, only two out of the thousands of altcoins on the market were able to outperform Bitcoin over the first half of the year.
On top of these poor insights, a crypto analyst says, Binance Coin is at risk of a 40 per cent drop.
Back in June of 2019 Binance made the fateful reveal that U.S.-based investors would not be able to trade on the platform after Sept 12. However, Binance is planning to usher them into a new U.S-based Binance exchange, but the platform will feature under 30 altcoins and BTC is still only a consideration at the time of this article.
There are many questions that are arising regarding the future of the Binance Coin’s price. How will BNB be implemented in the new U.S. platform? Will support hold for the coin? What crypto assets may be deemed securities or fall under specific regulatory guidelines and what if those guidelines continue to change?
Besides BTC, Litecoin, and Binance Coin, the answer to some investors has been to selloff assets. Many investors are no longer willing to take the risk associated with holding onto the more obscure altcoins found on Binance and similar platforms. Some fear that these coins won’t be tradable in some regions and they’ll essentially be carrying digital paperweights. The quickest solution many have found has been to sell their more obscure assets and purchase the more regulatory friendly Litecoin or Bitcoin.
What should you do next?
If you are a U.S-based investor who uses Binance, download your last account statement so that you have full documentation of your actions on Binance for tax compliance. It was only a month ago that many letters were sent out by the IRS to traders who did not report their earnings from crypto assets.
Withdraw all your holdings, yes, the Bitcoin too¸from Binance, even if your account will be open, Binance will possibly close your account eventually. Since you cannot trade or deposit into your account as of the 12th of September, there isn’t a real cause to keep the assets in your account.
Finally, you can wait for the U.S.-based Binance platform or seek a new platform like, KuCoin or BitMax, (both support the trade of BTC). These are well-received alternatives, but seeking new altcoins at this time in the market may not be the best idea. Reinvesting into more regulatory friendly digital coins mentioned above, (Litecoin and Bitcoin) should ensure a more reliable investment at this point.
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