June 23 (Cointime) - Cryptocurrency traders are using Palau's digital residency program to access restricted trading platforms such as Binance, which are banned in the US, Canada, and China due to a lack of operating licenses. Palau's digital residency program provides a digital and physical identity card after undergoing an approval process that includes anti-money laundering checks.

While the government of Palau and the RNS platform deny endorsing any activity that circumvents the law, crypto traders have shared experiences using their Palau ID to access banned exchanges on social media. Binance has come under legal scrutiny for allegedly maintaining loopholes for American users to bypass identity checks.