Why should I use a VPN with Binance?
As previously mentioned above, due to a change in its terms of use (strict KYC and anti-money laundering restrictions), Binance no longer allows US investors to deposit and trade on its exchange platform.
Of course, there is the alternative of using Binance.US for those living in the USA but unfortunately, this one is not even close to Binance.com, as it comes with many limitations.
Therefore, those of you who are currently located in the USA can bypass Binance’s geo-blocking by using a VPN service which will allow you to use the cryptocurrency exchange as you normally would.
Moreover, we also encourage those of you living outside the US to use a VPN – preferably a premium one – while trading on Binance since such a service offers many other great benefits which will make your online experience safe and private.
By using a VPN service with Binance you can benefit from the following:
- Bypass geo-blocking. A VPN replaces your current IP address with one in another country (e.g. Italy) where Binance is available and thus, you’ll trick the platform into thinking you’re located elsewhere.
- Online anonymity. Usually, many of your online activities can be tracked by other parties – crypto trading and transactions are no exception. Since a VPN masks your real IP address, your transactions won’t be linked back to your real address anymore.
- Enhanced security. A VPN service provides strong encryption, by routing your internet traffic through a secure tunnel. Therefore, you’re online financial activities will be secure and you’ll be far less susceptible to frauds and cyber-attacks.
- Avoid bandwidth throttling. Your ISP may throttle your bandwidth based on your specific online behavior or activities. Given that a VPN encrypts your traffic and shields it from your ISP, you shouldn’t worry about slower internet speeds anymore.
Why is Binance banned in the US?
Binance was founded by Changpeng Zhao and was initially based in China but moved to the Cayman Islands because of China’s strict regulations and ban on cryptocurrencies.
In the US, it didn’t have a brighter future either, now being investigated by the US Justice Department and the Internal Revenue Service on suspicions of illegal activities such as tax offenses and money laundering.
The company’s issues with US federal law enforcement authorities came amid growing regulatory measures on the crypto market whose lack of oversight made government officials become suspicious about whether the digital assets were used for unlawful activities.
The blockchain forensics firm Chainalysis which works with federal agencies stated that Binance was the primary crypto exchange for illicit cryptocurrency and criminal activities while dodging government oversight.
Binance is also a member of the crypto crime cartel which is known for manipulating markets and money laundering and this is why it has been prohibited from operating in some countries, including the United States.
Those living in the USA are no longer permitted to trade on Binance.com but on Binance.US instead; however, this has fewer trading options than Binance.com, so many are looking to find ways to get around this ban.
Is it illegal to use a VPN with Binance?
Certainly, it’s not illegal to use a VPN service in general except for a few countries that have strict censorship laws and criminalize its use.
So, in countries where using a VPN is not illegal, you shouldn’t worry at all about any legal repercussions neither in general nor in this particular case with Binance.
For example, there have not been any reports of US investors getting penalized when they traded and deposited with a VPN on the Binance cryptocurrency exchange platform.
Nonetheless, if you do use a VPN in order to access a platform not available in your area or just want to use a specific one for other reasons, you should proceed with caution, as you will be penalized otherwise.
Their terms of use strictly ban those who are outside of Binance’s supported areas from using the crypto exchange, so you can immediately be denied service, including losing your funds if you get caught.
Should I use Binance or Binance.US?
When it comes to choosing between Binance or Binance.US, this certainly depends on where you’re living (except if you choose to use a VPN to bypass geo-blocking) as well as the trading options available.
While Binance is currently available in many countries worldwide, Binance.US is only available in 43 US states across the country; although they bear the same name and logo, they are actually operated by different companies.
As previously discussed, the only way you can use Binance in the USA would be by connecting to a VPN server in a country where the service is available; the same is true if you want to use Binance.US outside of the US – which is less probable.
Now that we already dealt with geo-restrictions, let’s take a look at how the two platforms compare in terms of what they have to offer – which will help you make up your mind.
Binance platforms comparison
Binance.com is user-friendly and offers three levels organized according to trading experience; on the other hand,
As far as the number of cryptocurrencies is concerned, Binance.com is the clear winner here with more than 150 supported cryptocurrencies, while Binance.US only supporting 52 coins.
The standard Binance.com trading fees are 0.1%, but you can get a discount of 25% if you pay your fees in the BNB native token instead of paying them in the coin you are buying.
Binance.US uses the same fee structure, with trading fees starting at 0.1% but it offers fees as low as 0% to those who invest millions of dollars
Binance.US is less robust, has limited options and higher trading fees.
Also, if you hold BNB in your account, you will have a 25% discount, and your trading fees automatically be deducted.
➡ Limitations
Binance.com
allows buying crypto with fiat (e.g. debit or credit cards) and uses the Simplex service which charges 3.5% of a transaction with a $10 minimum (flat fee). The daily limit is $20,000, while the monthly maximum is $50,000 per user.
For crypto-to-crypto transactions, there is no buying limit; however, there is a withdrawal limit of 2 BTC for those with unverified accounts, but this can be lifted if you verify your identity through the KYC process.
Binance.us
This platform also imposes limits on trading but these are high enough, so most probably you shouldn’t care that much about them. For example, BTC/USD orders can’t be larger than 3200 BTC, although these limits can vary.
With Binance.us, users can withdraw or deposit up to $1 million via bank wire or can deposit up to $30,000 via ACH bank transfers. Also, you can purchase cryptocurrencies with a debit card.
➡ Location
Given the information presented above, you can either use Binance.com or Binance.US based on your location and without the use of a VPN. If you want to access any platform no matter where you live, use the one that best fits your needs.
In conclusion, you can use a VPN to access Binance.com even if you’re outside of the US. You just have to connect to a non-US server – you can easily choose one from Europe, for example.
However, you need to take into account a few considerations before deciding to use the platform while connected to a VPN service.
First off, keep in mind that you will be doing this at your own risk – which may include losing access to your funds – since the Binance terms and conditions strictly prohibit US residents to use the website.
Secondly, there are limitations as far as the trading volume and transfers are concerned, so if you want to bypass them, you’ll have to verify your account, which will imply uploading a non-US ID regardless of your IP address geolocation.
If you just want to send a few hundred dollars, you should be ok with a VPN; however, you shouldn’t expect to set up a US payment method for evident reasons.
On the upside, you do have a 2 BTC per day withdrawal limit with an unverified account. That’s certainly a lot of money without having to fill out you know your customer (KYC) information.
All things considered, we understand that you want to use the Binance cryptocurrency exchange platform while located in the USA.
But at the same time, we advise you to do it with caution and by taking the necessary precautionary measures to prevent any loss of money. In order to keep you safe from losses because of market fluctuations or hacking activity, here is a shortlist of useful materials for you and any other crypto-trader:
Since you can bypass a lot of geographical fences by using a virtual private network, you should also take a look at our list including the best VPN for Windows 10 PCs, and pick a solution for general usage.
Should you have any questions about all you have read, you can write us a comment in the section below.
