Washington DC: According to a recently published survey, Americans have found a way to circumvent regulations aimed at preventing US customers from accessing foreign crypto exchanges.
According to a report released by the US Commodity Futures Trading Commission, hundreds of Americans are circumventing restrictions to trade crypto derivatives in foreign exchange such as FTX and Binance.
The report states that Americans can easily circumvent the laws and regulations created to prevent transactions on offshore exchanges.
This report was produced by Inca Digital, the data company CFTC uses for research and market monitoring.
Cryptographic derivatives allow traders to bet on whether Bitcoin or other digital currencies will increase or decrease in value. While operating outside the United States, exchanges do not comply with CFTC rules such as investor protection requirements and protection against money laundering and market manipulation.
As quoted by The Wall Street Journal, the CFTC said in an email statement, “US customers are likely to have little or no protection when dealing with unregistered businesses operating outside the United States.” Said.
The Incas reportedly monitored more than 2,000 Twitter accounts used by crypto derivatives traders, including 372 belonging to the Americans.
Authorities believe that these US traders identified by the Incas represent a small percentage of the millions of users of offshore crypto exchanges.
The majority of American traders used FTX, which has an office in Hong Kong.
But FTX told The Wall Street Journal that it would help block US users.
Americans can trade offshore cryptocurrencies using a virtual private network that hides the country in which Internet users are based.
Notably, with FTX, the lowest level of trading access did not require a document to prove the trader’s identity.
According to reports, Americans are bypassing the law to trade crypto derivatives
Source link According to reports, Americans are bypassing the law to trade crypto derivatives