US Traders Massively Use VPN to Bypass Cryptocurrency Derivatives Trading Bans – Bits Media

According to research by Inca Digital, American cryptocurrency traders bypass geo-blocking sites of foreign trading platforms using a VPN.

US traders easily bypass cryptocurrency exchange restrictions, closed access based on geographic subnets of IP addresses. To do this they use virtual private networks (VPN), changing their location to country, where trading of digital assets is allowed. Besides, When registering on exchanges, users may intentionally provide false information about their place of residence.

Inca Digital technology is used by the US Commodity Futures Trading Commission (CFTC), regulating derivatives trading in the United States. Offshore sites are not controlled by this agency, therefore they may not be subject to CFTC rules, relating to investor protection and combating market manipulation.

Inca Digital analyzed traders' Twitter posts about successful cryptocurrency transactions. Analysts found about 2000 similar tweets, 372 of which were written by Americans. Of them 240 citizens used the Hong Kong exchange FTX. It is assumed, that this is only a small part of the real number of traders, bypassing blockages.

More recently, FTX users at the initial KYC level could withdraw up to $9000 without providing documents, identification documents. Later, the management of the trading platform reported, which will tighten measures to block US traders.

The Binance exchange has repeatedly sent notifications to US citizens, so that they stop using the platform, because it violates the laws of their country. Earlier, Forbes journalists published an article, in which they stated, that Binance allegedly encouraged US citizens to use VPN services, to avoid regulatory scrutiny. Binance has denied these claims and sued the publication for libel..