U.S. crypto traders are able to easily bypass blocks on overseas derivatives platforms, new research has found.

American crypto traders are getting round measures that are supposed to block them from using offshore exchanges such as FTX and Binance, the Wall Street Journal reported Friday, citing research by data firm Inca Digital.
U.S.-based traders are able to use virtual private networks designed to mask the country where they are based. Or they simply lie about where they are from.
Inca's technology is used by the Commodity Futures Trading Commission (CFTC), the body that regulates derivatives trading in the U.S. Offshore exchanges operate outside of the CFTC's purview and can avoid some of the rules relating to investor protection and market manipulation.
The research was conducted by scanning Twitter for exultant tweets about successful trades and so on.
Inca found 2,000 such tweets, of which 372 belonged to Americans. It is likely this represents only a tiny proportion of the total number, the Journal said.
Of the 372, 240 were using FTX, prompting the Hong Kong-based exchange to say it will tighten its procedures to block U.S. users.
Until this week, FTX users were able to gain entry-level access with a daily withdrawal limit of $9,000 without needing to provide identification documents.

Guild of Guardians Built to 'Win' the Web2 Mobile Space: Game Director

13:18

Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO

05:10

Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny

04:07

The first video of the year 2024

40:07

The last regression video of the year 3.67.0

STORY CONTINUES BELOW

Recommended for you:

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information have been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.