Binance DEX, a decentralized features-based exchange, which is developed on top of Binance Chain will ban U.S. residents and users from other 28 jurisdictions, including Belarus, the Crimea region of Ukraine and Venezuela starting in July, according to the exchange's Terms of Service.
In the meantime, many users found this decision to be unclear since true DEX (decentralized exchange) doesn't require KYC verification, and, what is more important, should not be depended on a central authority.
Some users on Reddit have already expressed their suspicion regarding the honesty of Binance's intent, while the others highlighted that Binance DEX wasn't the true DEX from the very beginning.
"It's not a DEX, it's a non-custodial exchange, big difference," user with a nickname "moon401k" posted in the Binance DEX thread on Reddit.
However, back in February, the Co-Founder & CEO of Binance, Changpeng Zhao (CZ), admitted that Binance DEX is not a fully decentralized exchange.
A few guys seem to be bent out of shape, take it easy. Don’t call it a DEX. Call it an exchange where users control their own funds, runs on a fast blockchain maintained by a number of nodes, plus a fast and easy UI. That’s it.
— CZ Binance (@cz_binance) February 22, 2019
Last year, Binance asked its remaining users from Iran to withdraw their money as the cryptocurrency exchange wanted to comply with international sanctions against their country.
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