The decentralized crypto exchange, Binance DEX announced last a few days ago that users with IP addresses from the United States will not be able to access the platform. This triggered a series of criticism, as well as accusations that Binance DEX is not a truly decentralized platform.
There have been instances where many industry experts and analysts have criticized the Binance ecosystem for being centralized, and too much dependent on the management. Binance, however, has strongly maintained that Binance DEX is completely decentralized and that all the accusations were baseless. When asked that how could a decentralized platform could geopolitically block users of a particular region, Changpeng Zhao, CEO of Binance stated that it is actually done by Binance.org, and not the DEX itself.
Ever since the news broke out, crypto enthusiasts and stakeholders have lashed out Binance. On Friday, CZ replied to a tweet by Vitalik Buterin, Ethereum Chief, stating that everything on Twitter isn’t true. He also shared another tweet of his, in which he claimed that Binance.Org, the website blocks regions geopolitically, not the DEX.
— CZ Binance (@cz_binance) June 14, 2019
However, what’s important to note is the fact that despite blocking US customer, first from using Binance DEX and then the centralized exchange Binance.com, Binance has entered in a new partnership with BAM Trading, a US-based crypto trading platform. The partnership will launch Binance.US, a crypto exchange specifically for American customers. This has raised more eyebrows, as many have questioned the move, which comes at a time many other exchanges, including Huobi Global, blocking the US.
Coming back to the decentralization part, despite Zhao’s explanation, the community doesn’t seem to be convinced. A similar accusation was made last month, after hackers attacked Binance Exchange, and causing a loss of $40 million. A controversy erupted when CZ tweeted Binance was in discussion for a possible re-org for the Bitcoin lost in the hack.
— CZ Binance (@cz_binance) May 8, 2019
The community accused that had it been possible and within reach of Binance, it would have persuaded the idea of re-org, which would have busted the myth about decentralization.