Binance CEO Changpeng Zhao Urges Cryptocurrency Traders to Use VPN
CZ’s comments come amid a recent pop-up on the Binance website that some commentators incorrectly ascribed to the platform geoblocking traders from specific countries including the U.S.
Getting Around Country-Specific Blockade with VPNs
Responding to Twitter complaints on June 2, 2019, Zhao clarified that there was no country-specific blockade preventing people from trading on its decentralized exchange, Binance DEX.
On Sunday, reports emerged of a pop-up on the Binance website saying traders from some countries cannot access the wallet interface via the website. According to the details provided in the pop-up, this action was to take effect on July 1, 2019.
Commenting on the issue, CZ quipped:
Indeed, with governments keen on cryptocurrency-related censorship, the use of VPNs cannot be overemphasized. VPNs allow users to alter their computer’s internet protocol (IP) address to get around firewalls created by the state.
VPNs, peer-to-peer services, and more recently cryptocurrencies, all fall into the basket of libertarian ideals deemed necessary to combat perceived government overreach. VPNs could also add a security layer for cryptocurrency traders, protecting their trading footprint from would be “bad actors.”
Binance DEX Won’t Geofence Cryptocurrency Traders
The Binance chief also assured platform users that there were no plans to geofence any assets listed on the exchange. According to Zhao, while websites may be blocked, blockchains cannot be geofenced, so traders have nothing to worry about in that regard.
Back in May 2019, Circle-backed Poloniex announced that it was ceasing U.S. trading on nine cryptocurrencies due to uncertain signals from the Securities and Exchange Commission (SEC). Amid the reports at the time, Circle even released a detailed analysis of the regulatory environment in the country and the negative consequences posed to the emerging digital landscape in the U.S.
Users can also utilize wallets that have direct Binance DEX trading support. This method could prove useful for traders who may not wish to use a VPN. Several respondents on Sunday provided a long list of cryptocurrency wallets that provide such functionality.