New research suggests that Americans are circumventing bans aimed at blocking US customers from accessing foreign crypto exchanges.
Hundreds of Americans trade dangerous crypto derivatives on offshore exchanges such as FTX and Binance, according to a report released Friday. The report sheds light on the industry’s open secrets. US crypto enthusiasts can easily circumvent measures that try to block them from offshore exchanges.
Cryptographic derivatives allow traders to make leveraged bets on whether Bitcoin, Dogecoin, or other digital currencies will rise or fall. In the United States, such commodities are regulated by the Commodity Futures Trading Commission. By operating outside the United States and not servicing US clients, exchanges can circumvent a number of CFTC rules, including investor protection requirements and protection against money laundering and market manipulation.
“US customers are likely to have little or no protection when dealing with unregistered businesses operating outside the United States,” the CFTC said in an email statement.
This report was produced by Inca Digital, the data company CFTC uses for research and market monitoring.
U.S. crypto traders circumvent offshore exchange bans
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