Decentralized exchange? Binance DEX will close access to residents of more than 20 jurisdictions

As is known, the term “decentralized exchange” (DEX) is understood as an exchange that operates on the basis of a distributed registry, does not store user funds and personal data on its servers, and acts solely as a platform for matching applications to buy or sell assets.

Trading on such platforms takes place directly between the participants (peer-to-peer) without the participation of intermediaries and, as expected, does not require passing KYC procedures, that is, identity verification.

However, a decentralized exchange from Binance, which was launched earlier this year, apparently has its own vision on this subject, at least with regard to user access.

For example, Twitter user MasterTrader777 noticed that Binance DEX updated the rules for using the platform, adding to it a list of jurisdictions whose residents will not be able to make deposits, withdraw funds and conduct trading soon.

Heads up yall! $ BNB @Binance #BNB #BinanceDex pic.twitter.com/y0eVKIvUBZ

– MasterTrader777 #BNB (@ToshiDesk) May 31, 2019

As can be seen on the attached screen, Binance DEX determines the user's IP and on this basis decides whether he can trade on the stock exchange or not.

Thanks to the help of one of the readers, BlockchainJournal can confirm that the corresponding warning also appears when trying to access the platform interface.

Note that the United States, Belarus, Moldova, Croatia, Serbia and the Crimea peninsula are on the list of jurisdictions. New rules come into force on July 1.

Discussions around such an unexpected policy of Binance DEX are already going to Reddit . Some users suggest that the upcoming restrictions can be circumvented, probably with a VPN. However, the main idea, as the user of BoyScout22 quite accurately noted, is that it cannot be considered as a decentralized exchange.

“Of course not, ” replies the user rekkktttt. “She doesn’t have the properties of a real DEX … and apparently, this is nothing but another way to dump BNB.”

Recall the official launch of Binance DEX took place at the end of April this year. The platform uses its own blockchain Binance Chain, on which users can also issue their own tokens.

Binance also plans to launch a new version of the main trading platform. Earlier this week, the exchange reported that Binance 2.0 is 90% ready.

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