There are two ways digital currency traders can access the Binance exchange platform; one is through its .org website and the other through a handful of wallet applications. The advantage of using the latter is that geoblocking of IP addresses can be avoided, but this calls into question the supposed decentralized nature of DEX.

As the situation stands, 29 countries are blocked by the Binance website for compliance reasons, but the company encourages the use of wallets and even virtual private networks to circumvent the IP blocking restrictions. Part of what makes a decentralized exchange truly absent from centralized platforms is the lack of intent by operators to enact restrictions. It could be argued that Binance has the best of intentions by suggesting the use of workarounds to American traders, but there is a significant caveat in this regard.

The Binance terms of service clearly state that connecting via VPN is not allowed. Violations could result in permanent bans applied by platform operators, which means that they retain central control. Something else that implies Binance being a centralized platform is the fact that its terms of service mention the likelihood of crypto being booted off the network at any time, something that would never happen on a decentralized network unless a blockchain is somehow disconnected.

The reality of Binance DEX is that the company operates on a centralized basis despite claiming the contrary. This is not only confusing but also risky to traders because they could engage in violations by investing in prohibited instruments such as initial coin offerings. Since the Securities and Exchange Commission has determined some ICO tokens to be securities, they would have to obtain regulatory approval and become listed on markets that are not ready to accept them. Just because Binance decides to list these tokens does not mean that the platform is decentralized, particularly when it reserves the right to remove such tokens and leave traders hanging. As for the geoblocking and compliance measures enacted by the company, they are further proof that central control is at play, thus making Binance a confusing option for digital currency traders.