Sirwin
Sirwin

Banned in the U.S.A. What now?


Opening an account on Binance or Bitmex used to be a simple process. 

But if you live in the U.S. opening an account comes with hastle and risk.  18717fc833ab41e8fe690008cc24dbebcd9f791fb24017334485375241f8ae95.png

I have traded crypto on the major exchanges jumping from one exchange to the other sometimes to make a profit mostly because prices vary from exchange to exchange. The going price for ETH or BTC sometimes can be significantly different from one to the other, like a $1,000 difference 

    • If
  •  
  • anyone
  • h
  • as
  • opened
  • a
  • n
  • account on Binance or Bitmex recently than you know that one of the first things they do is verify that you are not from the U.S.  They simply ask if you are American or not. They are putting you on the spot right then and there.  Binance has begun locking accounts and blocking IPs from American users. 

Bitmex and Hitbtc too.  If they suspect any user violating the terms of service for being an American or residing in the U.S. than they may lock your account and liquidate funds, end of story. Many other exchanges have a similar approach to cracking down on American users.  VPNS are no longer a proven safety measure as some of these exchanges are checking IPs for proxies and VPNs. A very strict "anti money laundering" and "know your customer" campaign indeed. 

According to Coinbase, all cryptocurrency sales and conversions are reportable to the proper authorities. Any gains must be reported at their fair market value. Here us a list of what is or isn't reportable. 

Taxable/reportable:

1. Selling cryptocurrency for cash

2. Paying for goods or services

3. Buying one crypto with another cryptocurrency ( swapping)

4. Receiving mined crypto, airdrops

5. Receiving crypto rewards (staking)

Not reportable/taxable:

1. Donating crypto

2. Hodling. No loss or gain if its just held. 

3. Transferring between wallets or from exchanges being that you have already reported it.  The new Administration favors heavy digital regulation not just on crypto. 

Bitmex has been in the news lately because the U.S. Department of Justice and the Futures and Commodities Trading Commission has charged them with violating KYC and AML regulations.

PGP encryption and Bitcoin share a history.  In the 1990s the President elect was then a chairman of the judiciary committee and introduced 2 bills for strong anti encryption languages and 20 odd years later we have BTC thanks not only to Satoshi but also to Paul Zimmerman the programmer who finished PGP encryption. c7f563abd99e7fc97e99ef6291a71bc4b6ee1a433acf51693514d00b9ffff739.png

Bitmex has now begun asking users from the U.S. to withdraw funds within 90 days or risk losing them. This is a trickling affect that we will feel all the way around the block. One IP leak and you could have your account locked and liquidated. End of story. ec31dd68880df3c64644048581c463dc02ec8ee8acd342b84e4974b14ed1deb5.png

How about Decentralized Exchanges?  Well, they too are starting to feel the tightening.  Google Play store has blocked access to Americans to Komodo's AtomicDex aka AtomicDefi. I happen to be a stress tester for the beta version and access is blocked for updates unless it is compiled from the codebase on Github. This by the way is probably one of the best Dex's I've used. Some of the development teams from various projects seem to think that governments all over will soon go after the coders and development teams of certain platforms. 

Unfortunately, this is becoming another obstacle for devs ultimately having to adapt to the ever changing digital world. Regulation is coming fast.

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bobby d!gital
bobby d!gital

I'm a developer and love all kinds of technology


A cryptocurrency journey ongoing
A cryptocurrency journey ongoing

A journey ongoing. Lets explore projects with great potential, whitepapers, protocols and the emerging DeFi trends and maximize this new era in finance.

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