Why is it that many exchanges don't allow me to trade when they find out I live in USA? What good is Monero if I can't purchase or sell?
There are plenty of exchanges that allow you to trade Monero, even if you live in the US.
Why is it that many exchanges don't allow me to trade when they find out I live in USA?
There are regulations that companies must follow to have US customers, many companies feel that there is a lot of paperwork and delay.
What good is Monero if I can't purchase or sell?
Some companies have jumped through the hoops, those that haven't allow you to hold the money or withdraw it; "trading" isn't allowed.
Visit Wikipedia for information about alternative trading systems.
Coindesk offers these explanations:
- FINRA has sat for months on roughly 40 broker-dealer applications from companies dealing in crypto assets, denying them a broker-dealer license that would let these firms offer securities in the U.S.
- Some think FINRA, a self-regulatory organization, is holding off on these approvals at the SEC’s request, as the agency has yet to offer clear guidance.
- Frustrated crypto startups may look to abandon the U.S. entirely, and focus on launching in other jurisdictions.
Some startups have been waiting at least a year, with a few standing by for as many as 14 months, without seeing any movement from FINRA, three of the sources said."
"Juan Hernandez, CEO and founder of securities trading platform OpenFinance, told CoinDesk that FINRA has been slow, but that this did not necessarily indicate that there was any sort of order preventing approvals.
OpenFinance, tZERO, SharesPost and Templum Markets are ATSs (alternative trading system) that received approval to list digital assets last year – meaning they would have received their approvals while other companies were still waiting. These firms have already conducted some initial security token transactions.
SeedInvest, an equity crowdfunding platform acquired by crypto startup Circle last year, is also an ATS, though the platform cannot list cryptocurrencies for trading at this time, including security tokens.
Hernandez told CoinDesk that FINRA has “been slow to push forward a couple filings but … they did allow [SeedInvest] to push forward with the caveat that they need to do additional filings to be able to transact with digital securities.”.
"SEC, FINRA Issue Explanation of Crypto Custodian Approval Delay" (July 8 2019):
"The U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) believe there are a number of questions they need to address before they can approve crypto companies’ applications to become broker-dealers."
"Broker-dealers in the U.S. are legally registered and regulated entities which are able to purchase or sell securities, both on their own behalf, as well as for clients. Some companies want to use digital assets as securities, allowing them to market to institutional investors who cannot hold or directly purchase these assets.
While a broker can prove that it possesses the private keys to a crypto wallet, it would be difficult to prove that no other entity does, the statement says, explaining:
It may not be able to demonstrate that no other party has a copy of the private key and could transfer the digital asset security without the broker-dealer’s consent.”
The joint statement comes in response to questions from market participants, the document says.
Companies applying for broker-dealer approvals have been sitting in limbo for months, with some firms waiting more than a year, as CoinDesk previously reported.
Many of these firms claimed that the SEC imposed a moratorium on broker-dealer approvals for firms which touch digital assets, while others said that cryptocurrency-based securities simply present novel issues that the regulatory agencies must first assess. Monday’s joint statement would appear to be a confirmation of the latter theory.
Crypto exchange Gemini was the most recent firm to apply for a broker-dealer approval.".
Bittrex's answer is a bit cryptic, quoting the relevant bits and pieces:
"Does this mean that Bittrex is leaving the US?
Bittrex is proud to be a U.S. Digital Asset Trading Platform. U.S. customers will have access to a more limited number of markets as compared to what Non-U.S. Customers have on the Bittrex International platform. Like other industry participants, we will continue to advocate for laws and regulations that foster innovation."
"What if I’m a corporate customer?
Bittrex International isn’t only for individual or personal accounts. All eligible international customers, including corporate customers, will be redirected to the Bittrex International website once it’s launched. Corporate customers within the U.S. will continue using Bittrex.com.".
"Customers who have completed Enhanced Verification by providing a non-U.S. government ID and who reside outside of the U.S. will be eligible to access to Bittrex International.".
"What happens when the new international platform launches?
Once launched, non-U.S. customers will be redirected to the Bittrex International site (https://International.Bittrex.com), and U.S. customers will remain on Bittrex.com."
"All customers will continue to have access to all of the same tokens, trading pairs and wallets on Bittrex.com (even if you are redirected to https://international.bittrex.com), and non-U.S. customers who are eligible to access the international platform will be able to trade new tokens only available on Bittrex International. U.S.-based customers will continue to use the Bittrex.com site and will not have access to the new tokens available on Bittrex International."
"What’s in it for me?
We’ve taken the best of Bittrex.com, such as industry-leading security practices, access to 24/7 customer support and a secure, reliable and advanced digital asset trading platform, to create Bittrex International. With the regulatory certainty and streamlined token listing process provided by the Malta Virtual Financial Assets Act, Bittrex International will be able to list blockchain projects within weeks. This means that our international customers will have access to the newest, most innovative blockchain projects without delay. In fact, if you’re interested in an exciting, new and authentic blockchain project, there’s a good chance we’ll have it listed very soon!".