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> Although the intentions of many US cryptocurrency regulations are to protect US residents/investors, they are instead leading to the exclusion of US residents

> Although the intentions of many US cryptocurrency regulations are to protect US residents/investors, they are instead leading to the exclusion of US residents from everything cryptocurrency-related. Coinbase, Gemini, Kraken... The US gov has actually been very progressive with regard to crypto. But if you're dealing in USD and doing bank wire transfers on behalf of USA citizens they require compliance with KYC/AML laws. This is apparently something Bitfinex didn't have the capacity to comply with.

ve55 9y ago
Right, it's not difficult if all you want to do is buy BTC or ETH and then sell it later at some point. Gemini is probably the best option for that. Bitfinex offered KYC/AML for US citizens that wished to interface with fiat (USD), but had trouble maintaining their relations with US banks. But if you want to do much more than that, things get pretty difficult if you're trying to be 100% compliant with known regulations and laws. Especially if you are crazy enough to consider the way things are supposed to be taxed when dealing with many cryptocurrencies, tokens, microtransactions, chain splits, air drops, and many other unconventional new mechanisms.
- ajross 9y ago
  Other countries have broadly equivalent AML statutes. Bitfinex simply believes they can get away with breaking those laws in smaller juristictions.
  - deleted 9y ago
    [deleted]
  - trhway 9y ago
    Other countries don't have such capability to get their extradition requests obeyed :)
jabits 9y ago
No, this is a simple case of over-regulation in a budding market way too early. Coinbase pulled out of Hawaii due to burdensome state regulations. I had to open a new account from address in another state. "Although we strive to provide continuous access to Coinbase services, we regret to inform you that Coinbase is indefinitely suspending services in Hawaii. The Hawaii Division of Financial Institutions has recently communicated regulatory policies which will render continued Coinbase operations in Hawaii impractical. We understand this suspension will inconvenience our Hawaii customers and we apologize that we cannot currently project if or when our services may be restored.” http://www.hawaiiweblog.com/2017/02/27/coinbase-pulls-out-of-hawaii http://www.hawaiiweblog.com/2017/02/27/coinbase-pulls-out-of...
- benwilber0 9y ago
  But that's Hawaii's state regulation. Take it up with their state legislature. Coinbase operates just fine in most USA states.
  - jabits 9y ago
    I guess my point is premature regulation in general. In this case and with Bitfinex, citizens are deprived of "pursuit of happiness...", for what? Protection of the individual from their own own mistakes? More likely, eventual taxation. Anyway, it's not the end of the world for personally. Just a hassle. And I do not have time to "take it up with Hawaii". Maybe some day.

ve55 9y ago

Right, it's not difficult if all you want to do is buy BTC or ETH and then sell it later at some point. Gemini is probably the best option for that. Bitfinex offered KYC/AML for US citizens that wished to interface with fiat (USD), but had trouble maintaining their relations with US banks. But if you want to do much more than that, things get pretty difficult if you're trying to be 100% compliant with known regulations and laws. Especially if you are crazy enough to consider the way things are supposed to be taxed when dealing with many cryptocurrencies, tokens, microtransactions, chain splits, air drops, and many other unconventional new mechanisms.

ajross 9y ago
Other countries have broadly equivalent AML statutes. Bitfinex simply believes they can get away with breaking those laws in smaller juristictions.
- deleted 9y ago
  [deleted]
- trhway 9y ago
  Other countries don't have such capability to get their extradition requests obeyed :)

jabits 9y ago

No, this is a simple case of over-regulation in a budding market way too early. Coinbase pulled out of Hawaii due to burdensome state regulations. I had to open a new account from address in another state. "Although we strive to provide continuous access to Coinbase services, we regret to inform you that Coinbase is indefinitely suspending services in Hawaii. The Hawaii Division of Financial Institutions has recently communicated regulatory policies which will render continued Coinbase operations in Hawaii impractical. We understand this suspension will inconvenience our Hawaii customers and we apologize that we cannot currently project if or when our services may be restored.” http://www.hawaiiweblog.com/2017/02/27/coinbase-pulls-out-of-hawaii http://www.hawaiiweblog.com/2017/02/27/coinbase-pulls-out-of...

benwilber0 9y ago
But that's Hawaii's state regulation. Take it up with their state legislature. Coinbase operates just fine in most USA states.
- jabits 9y ago
  I guess my point is premature regulation in general. In this case and with Bitfinex, citizens are deprived of "pursuit of happiness...", for what? Protection of the individual from their own own mistakes? More likely, eventual taxation. Anyway, it's not the end of the world for personally. Just a hassle. And I do not have time to "take it up with Hawaii". Maybe some day.