LONDON, Jan 13 (Reuters) – Coinbase, the world’s largest cryptocurrency exchange, has announced the acquisition of FairX, a crypto futures exchange, as part of a plan to sell crypto derivatives to traders in the United States. LMX Labs’ operating name is FairX, which was launched last year.
Can citizens of the United States trade cryptocurrency futures?
Even when living abroad, US nationals are barred from using crypto margin trading sites. However, there is a crypto trading platform that has obtained the authorization to offer crypto trading with a modest leverage to its US consumers in practically all US states.
Is it possible to trade crypto futures on Binance?
Binance. Both US and Kraken are U.S.-based exchanges with low trading costs when compared to competitors like Coinbase. Both platforms have established KYC standards to assist prevent fraud and protect users, as well as industry-standard security features such as multi-factor authentication and wallet whitelisting. There are, however, some significant differences between the two platforms:
- Over 100 cryptocurrencies are available to buy, sell, and trade on Kraken, compared to just over 60 on Binance.US.
- Trading fees on Kraken are somewhat higher than on Binance.
- Fees for trading in the United States. Users of Kraken and Binance pay between 0% and 0.26 percent every trade. Users in the United States pay between 0% and 0.1 percent every trade.
- Binance.
- Margin and futures trading are not available in the United States, however Kraken does for some users.
- Kraken is available in 48 states in the United States, as well as on Binance.
- The United States is available in 45 states.
- Kraken offers a wider range of customer service choices than Binance.US. Users can call for help with their accounts, and live chat support is available 24 hours a day, 7 days a week.
Is FTX prohibited in the United States?
Residents of the United States of America are not permitted to trade on FTX’s platform. In the United States of America, FTT is not available.
Is FTX legal in the United States?
Users from Ontario or Japan, as well as non-professional investors from Hong Kong, are not accepted by FTX. Personal accounts of current inhabitants of the United States of America, Cuba, Crimea and Sevastopol, Iran, Afghanistan, Syria, North Korea, or Antigua and Barbuda are not onboarded or serviced by FTX.
Is Binance legal in the United States?
Customers in Louisiana can now buy, sell, and trade cryptocurrencies on Binance.US, three years after it was founded. Binance.US, the headquarter-less crypto exchange Binance’s US partner company, is currently available in 45 US states.
Residents of Hawaii, Idaho, New York, Texas, and Vermont will have to wait for Binance.US services to become available.
“Each state, including Louisiana, has its own set of standards, and we’re working hard to ensure that we’ll be allowed to function in all 50 states eventually,” said Sidney Majalya, Binance.US’ chief risk officer. “We’re excited to bring our services to Louisiana, and, like other states, we’re looking forward to engaging with state officials to demonstrate our compliance-first approach.”
Wyoming was the most recent state to be removed from Binance.US’ restricted list in March. The barriers to entry into the US market have been significant, with each state requiring distinct permits from various state agencies.
The Connecticut Department of Banking required Binance.US to get a money transfer license before it could begin operating in Connecticut in January. The Georgia Department of Banking and Finance required Binance.US to get a supplier of payment instruments license.
Binance first prohibited US users in September 2019 due to rising legal restraints, and then announced the launch of Binance.US through a cooperation with BAM Trading Services.
To access Binance.US, customers in permitted states have to complete more stringent know your customer (KYC) criteria than Binance previously needed, including uploading images of acceptable ID and providing social security numbers.
Given that other US-based centralized exchanges have comparable requirements, demand for Binance has risen in recent years.
Majalya stated that the United States remained strong.
“So far in 2022, we’ve seen high demand in Connecticut and elsewhere,” Majalya said. “While it’s too early to forecast demand in Louisiana, we expect our cheap rates and unique user experience to continue to draw loyal clients from across the country.”
Majalya and a Binance spokesman.
The United States was unable to provide information on when the remaining five states may receive approval.
In a statement, Binance.US said, “The firm already operates in 45 jurisdictions across the United States and is working closely with the remaining state regulatory bodies to acquire permits so it can offer its services across all 50 states and territories.”
How can I purchase BNB in the United States?
In a nutshell, that’s how to purchase Binance Coin. Continue reading for a more in-depth look at Binance Coin and how to purchase it. Here’s what I’ll talk about:
Are crypto derivatives prohibited in the United States?
Cryptocurrency exchange regulations in the United States declare that they are legal and fall under the Bank Secrecy Act’s regulatory purview (BSA). In reality, this means that bitcoin exchange service providers must obtain a FINCEN license, establish an AML/CFT and Sanctions program, keep proper records, and file reports with the authorities. Meanwhile, the Securities and Exchange Commission (SEC) in the United States has stated that it considers cryptocurrency regulations to be securities, and that it would apply securities laws to digital wallets in a comprehensive manner that will effect both exchanges and investors. The Commodities Futures Trading Commission (CFTC), on the other hand, has taken a more approachable approach “Recognizing Bitcoin and Ethereum as commodities and allowing other virtual and cryptocurrency derivatives to trade publicly on exchanges it regulates or supervises, it takes a “do no harm” approach.
In response to the FATF’s June 2019 instructions, FinCEN has stated that it expects crypto exchanges to comply with record-keeping standards and the regulations “By exchanging information about the originators and beneficiaries of cryptocurrency transactions, the “Travel Rule” can be implemented. Virtual currency exchanges are regulated in the same way as traditional AML/CFT gatekeepers, financial institutions, and money transmitters in the United States, and are subject to the same rules, including those outlined in the Bank Secrecy Act revisions of 2021. (which has established its own version of the Travel Rule).
Is FTX a superior alternative to Coinbase?
Coinbase, on the other hand, offers a wider range of cryptocurrencies and a greater number of crypto-to-crypto trading pairs. FTX.US offers consumers a variety of crypto-to-national-currency trading choices, including the US dollar, the euro, and the Australian dollar. Staking and rewards programs are also available on Coinbase, delivering passive revenue to customers who possess bitcoin on its platforms.