Popular decentralized cryptocurrency exchange, Bancor, has confirmed in an update today that after July 8, it will no longer allow "US citizens, domiciliaries or users from US IPs" to access its application.
As you would expect, Bancor explained that its decision to restrict U.S users hinged on unclear regulations governing the cryptocurrency ecosystem in the country.
A section of the update read,
“This decision has been made in light of increased regulatory uncertainty; at this time, we believe this is the most judicious decision for all the members of our ecosystem. This will enable the Bancor community and ecosystem to innovate faster and with greater clarity.”
Bancor Restrictions for U.S Customers
To be clear, Bancor’s blocking of U.S users primarily restricts people from converting tokens that they hold on the exchange.
As per the announcement, users can still log-in, hold tokens, and transfer tokens from the United States.
Additionally, users can circumvent the ban by using Virtual Private Networks (VPNs) to mask their IP addresses. Using this medium is possible since Bancor is a decentralized exchange and does not custody a user’s cryptocurrencies.
“We cannot restrict users from accessing the blockchain itself. This cannot be blocked,” Bancor clarified.
Meanwhile, Bancor’s move does not come as a surprise, although it raises concerns that soon, U.S cryptocurrency traders would no longer have access to trading most cryptocurrencies classified as securities by the United States Securities and Exchanges Commission.
More recently, Binance revealed that it would stop allowing U.S users from accessing its primary platform, Binance.com. The exchange is reportedly developing a U.S subsidiary to serve the market, which represents a significant portion of its global user base.