(1) I am surprised but not-too-surprised by what you noted.
(2) Please tell me as I cannot tell from my end of the internet on this side of the Pacific, is it the case that
(2-i) you cannot access the web site address of certain crypto exchange addresses, or
(2-ii) you can access any / all crypto exchange(s) address but cannot register as a client, or
(2-iii) you can access any / all crypto exchanges address, and register as a client but is barred from buying the coins of some of the listed projects?
(3) If (2-i), then I suppose some of the sites are blocking USA-originating internet pings, in which a VPN ought to take care of the blockage but I am supposing the said crypto exchange will in any case not accept USA resident / citizens from registering as clients
If (2-ii), then the construct is that the said crypto exchange does not want USA resident / citizens from registering as clients.
If (2-iii), then I am very surprised, because development teams and validators include a lot of USA people based in Silicon Valley and receive CSPR tokens as rewards for their work on the network, and many if not most of the private round investors in the company and / or the token assuredly are USA entities (companies and people).
My understanding was that citizens and residents of USA, Canada, and China CANNOT participate in the ICO, but once listed, can buy the token on any exchange that sells them, as long as the exchange accepts them as customers. Else how are you folks buying BTC, ETH, etc etc and more importantly, reacting to serious hype, DOGE and ICP?
(4) My understanding from the internet rumor circuit including Reddit is that Binance (and therefore Binance USA?) shall soonest list CSPR (possibly next week). Should it be so, go go go.
(5) If it is the case that USA residents and citizens are specifically barred from buying CSPR, I am floored, as CSPR might turn out to be quite material 12-18 months from now, with or without USA investors engaging, even as USA businesses must hop to it and use CSPR for many good technical reasons, else fall behind in the metaverse pixelation process of internet-based business. Should it be so, that USA entities cannot engage with the newest ways of crypto-enabled / -enhanced business ways & means, we can off Amazon and go down the list.
So, bottom line, I really doubt it is the case that USA folks cannot legally buy CSPR. It might well be the case that USA folks cannot find an exchange that carries it? There are about 6-8 exchanges that deals in CSPR along side of BTC, ETC and tokens of dozens to hundreds crypto projects.
In any case, a true puzzle, and in the worst case, alarming. Crazy nutty, worthy of Congressional hearing on why folks in USA are not allowed to buy a ‘thing’ on the Internet when CCP-ruled China China China folks cannot buy at the ICO stage but once past that ICO beginning can buy in. Same for Canadians.
Here below is an article about Binance highlighting a related issue of possibly USA people perhaps buying and trading stuff like BTC and ETH.
bloomberg.com
Binance Faces Probe by U.S. Money-Laundering and Tax Sleuths
Tom Schoenberg
May 14, 2021, 2:09 AM GMT+8
Binance Holdings Ltd. is under investigation by the Justice Department and Internal Revenue Service, ensnaring the world’s biggest cryptocurrency exchange in U.S. efforts to root out illicit activity that’s thrived in the red-hot but mostly unregulated market.
As part of the inquiry, officials who probe money laundering and tax offenses have sought information from individuals with insight into Binance’s business, according to people with knowledge of the matter who asked not to be named because the probe is confidential. Led by Changpeng Zhao, a charismatic tech executive who relishes promoting tokens on Twitter and in media interviews, Binance has leap-frogged rivals since he co-founded it in 2017.
The firm, like the industry it operates in, has succeeded largely outside the scope of government oversight. Binance is incorporated in the Cayman Islands and has an office in Singapore but says it lacks a single corporate headquarters. Chainalysis Inc., a blockchain forensics firm whose clients include U.S. federal agencies, concluded last year that among transactions that it examined, more funds tied to criminal activity flowed through Binance than any other crypto exchange.
“We take our legal obligations very seriously and engage with regulators and law enforcement in a collaborative fashion,” Binance spokeswoman Jessica Jung said in an emailed statement, while adding that the company doesn’t comment on specific matters or inquiries. “We have worked hard to build a robust compliance program that incorporates anti-money laundering principles and tools used by financial institutions to detect and address suspicious activity.”
Spokespeople for the Justice Department and IRS declined to comment.
U.S. ConcernsU.S. officials have expressed concerns that cryptocurrencies are being used to conceal illegal transactions, including theft and drug deals, and that Americans who’ve made windfalls betting on the market’s meteoric rise are evading taxes. Such worries have been a hindrance to the industry going mainstream, even as Wall Street increasingly embraces Bitcoin and other tokens amid a global investing frenzy.
Read More: How Bitcoin Is Edging Toward Financial Mainstream
This month’s cyber-attack against Colonial Pipeline Co. that’s triggered fuel shortages across the Eastern U.S. is the latest sign of what’s at stake. Colonial paid Eastern European hackers a nearly $5 million ransom in untraceable cryptocurrency within hours of the breach, Bloomberg News reported Thursday, citing two people familiar with the matter.
Bitcoin losses accelerated Thursday after Bloomberg reported the investigation into Binance.
Read Bloomberg’s Coverage of Binance:
While the Justice Department and IRS probe potential criminal violations, the specifics of what the agencies are examining couldn’t be determined, and not all inquiries lead to allegations of wrongdoing.
The officials involved include prosecutors within the Justice Department’sbank integrity unit, which probes complex cases targeting financial firms, and investigators from the U.S. Attorney’s Office in Seattle. The scrutiny by IRS agents goes back months, with their questions signaling that they’re reviewing both the conduct of Binance’s customers and its employees, another person said.
The U.S. Commodity Futures Trading Commission has also been investigating Binance over whether it permitted Americans to make illegal trades, Bloomberg reported in March. In that case, authorities have been examining whether Binance let investors buy derivatives that are linked to digital tokens. U.S. residents are barred from purchasing such products unless the firms offering them are registered with the CFTC.
Analyzing TransactionsZhao has said Binance closely follows U.S. rules, blocks Americans from its website, and uses advanced technology to analyze transactions for signs of money laundering and other illicit activity. Last year, the firm warned that U.S. residents would have their accounts frozen if they were found to be trading, crypto trade publications have reported.
The inquiries follow a Chainalysis report on criminal transactions involving digital tokens. The firm tracked Bitcoin worth $2.8 billion that it suspects crooks moved on to trading platforms in 2019. Chainalysis determined that roughly 27%, or $756 million, wound up on Binance. Binance responded by saying it adheres to all anti-money laundering regulations in the jurisdictions in which it operates and works with partners like Chainalysis to improve its systems.
In the U.S., authorities have been cracking down on exchanges for flouting laws that are meant to prevent financial crimes, with officials citing the platforms use by terrorists and hackers. Tax violations have also been a priority, with the government recently winning a court order as it seeks to unmask U.S. clients of Kraken, a San Francisco-based exchange.
Read More: Crypto’s Anonymity Has Regulators Circling After Colonial Hack
In October, federal prosecutors in Manhattan announced charges against the founders of Seychelles-based BitMEX, accusing them of violating the Bank Secrecy Act by permitting thousands of U.S. customers to trade while publicly claiming to restrict their access. The claims included failing to register as a futures merchant with the CFTC and not having adequate anti-money laundering controls. Three of the BitMex officials pleaded not guilty and a trial has been scheduled for March 2022. One remains at large.
Washington PresenceWith the U.S. circling, Binance has stepped up its presence in Washington and retained a former Treasury Department official and top white-collar defense lawyers to represent it in legal cases and matters being reviewed by regulators. In March, the firm tapped former U.S. Senator Max Baucus, a Montana Democrat, to advise it on policy and government relations.
Read More: Crypto Lobby Forms to Shake Reputation as Criminals’ Currency
In September 2019, Binance partnered with a firm called BAM Trading Services Inc., which launched Binance.US to cater to American clients. Brian Brooks, who was a top banking regulator when he led the Office of the Comptroller of the Currency during the Trump administration, became chief executive officer of Binance.US this month.
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Amid the hiring blitz, the company has popped up in U.S. cases tied to criminal activity. In February, two Florida men were charged with running an online fentanyl trafficking operation, with one of them accused of depositing the proceeds in a Binance account. That same month, the Justice Department sought the forfeiture of cryptocurrency worth $450,000 traced from ransomware attacks that hit several U.S. companies to a Binance account held by a 20-year-old Ukrainian national. The government didn’t accuse Binance of wrongdoing in either enforcement action.
Disguising LocationsAlong with the CFTC, the Justice Department is likely to examine steps that Binance has taken to keep U.S. residents off its exchange. One person familiar with Binance’s operations said that prior to the establishment of Binance.US, Americans were advised to use a virtual proxy network, or VPN, to disguise their locations when seeking to access the exchange.
Jung, the Binance spokeswoman, said the exchange has never encouraged U.S. residents to use VPNs to get around its rules, as doing so would be something “that has always been contrary to our company’s principles.” In January, Zhao tweeted that Binance’s security systems block Americans even if they try to connect through one of the networks.
“We have implemented strong access controls that have been tested via external audit and are under continuous review and evaluation by Binance to ensure that the appropriate restrictions are in place and are effective,” Jung said.
— With assistance by Benjamin Bain, and Alyza Sebenius
(Updates with Bitcoin falling in eighth paragraph.)
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