Bitcoin Forum

I have been reading article that USA can limit ban crypto derivatives investments
What is your opinion you will like to comeback to old good time without Bitmex Derbit  without all that shady futures what are manipulating price make people rich and make people poor
I will like to see crypto like it was without all that paper trading .Institution can do whatever they want with his money at least trading on CME platform is regulated .There is no fake walls there is not wash trading

https://coingape.com/crypto-derivatives-cftc-usa/

It looks serious.Reason is customer protection

Then how to look. if they return to the old days, only anarchist believers will keep the cryptocurrency. Thanks to the growth, everyone decided to make money on it. In the article on your link, they only want to restrict access to investors, on the one hand, this is correct, but if you look at the other side, they make it impossible for a person to earn a little money.

Market manipulation and extreme volatility is the perfect recipe to enable all sort of government restrictions in the BTC market. I think crypto businesses need to be more professional and regulated before applying for derivatives/ETFs.

Yes, consumers need to be protected from P&D in crypto.

Would it really help for crypto businesses to be regulated? I mean, it's a global market, and the US can only control things within their jurisdiction. They could keep everybody on a tight leash and still be unable to stop shady dealings elsewhere (not even necessarily by businesses), which will potentially affect derivatives.

Either way, I people who want to dip their toes in the Bitcoin market could and should just purchase Bitcoin directly anyway. Derivatives are good in a sense that they can bring money in, but it's not the right way to go about it IMO.

If they do this what I can tell you I people will start going underground with these things , there is no way they are going to stop because it is not just anything but for some people it's their job , that's how they earn actually.
First of all they haven't done it yet and there are still chances that they won't do , what we can make count is cryptocurrency is an amazing thing and with limiting it in their country everyone just seems to want to get their own one out , is this even fair ?
I don't really know what is going to happen but people will find a way because government is actually made by people not vice versa.

Well it seems as though the common trend in the regulatory framework in the US is for the SEC to apply bans on services that offer securities on their Bitcoin platforms. Securities have always been over regulated and you have to apply with the SEC to offer these services. So the clampdown on services where there are a possibility for security fraud, has been the focus point for the SEC.

Yes, the SEC's main mandate is to protect the consumer, but I think their hidden agenda might be to protect the interest of a few super rich people in the inner circle of global finances.  :P   <The strict regulations also serve as a barrier to entry for the middle class and poor people>

This article is garbage. They are just speculating based on nothing that the CFTC will follow UK regulators in banning crypto CFDs and similar instruments. Offering these products (like what Bitmex or Deribit have) to Americans is already illegal. That's why Americans are already banned from both platforms.

I don't like futures contracts. They ignore the real prices, creating a bubble market over the real one. Just like other derivatives, really. IMO a big part of what crypto are is that their prices are purely demand-supply driven with no regulations, stabilizations and things like that. Derivatives make this whole idea useless since people literally agree on the price in advance regardless of what happens then.
The US is not doing very good at controlling their market of derivatives, and many point out that an economic crisis that is in its roots very similar to the one that happened in 2008 in coming because of that.

I don't think that even a regulated market will be significantly less manipulated - the bigger players still have significantly more market power than the smaller players, which intrinsically means that they are able to "manipulate" the market with their every move.

That's not to say that regulation isn't going to happen, though. It's in fact the polar opposite of that, the US in particular is certainly going to be trending towards further restrictions on derivatives on BTC.

Will BitMex, Deribit etc. shut down their operations completely towards US customers? Absolutely not, at least not until the regulatory pressure is really hurting them. And even if it does happen, there will be new unregulated ones popping out. Regardless of whether the derivatives market brings benefits or detriments, it's here to stay.

There are data that UK citizens lost from 170 mln to 270 mln GBP on futures trading
But people in UK are spending billions a year for only offline slot machines.Any kids in UK can gamble his pocket money with offline slots.They are even on bus stops
I think that FCA will limit margin to 2-1
USA is protecting from capital flight  even better than China and i also think big institutions will like to keep that market for them self .So it could be similar activity like it was in a case of Binance

Of course they will. Anywhere that has an accredited investor system is pretty much guaranteed to do it. Keeping stuff like that in the family is why that system was created in the first place. There's no way they'd let the little people let rip.

Once this is made explicit that's when proper American options will be launched for the 'right' people.

No they don't. They are usually directly tied to spot prices through an index or other similar mechanism. I see nothing wrong with them personally. They create additional liquidity for speculators and miners.


Off to Bitmex it is then! :)

BitMEX and Deribit already stopped accepting US customers. The thing here is that they know that people who are serious about trading on that platform will use a VPN and bring in the liquidity.

The few noobs with their 0.001BTC who will no longer make use of these platforms won't be missed at all. I would say that this is a convenient way to free up some bandwidth without any serious consequences.

People also like derivative platforms because they allow you to long/short shitcoins without actually owning them. It's an easy way to ride their massive up and down swings and go further by adding leverage.

No way people will abide by whatever the US government says. Long live VPNs and non KYC derivative platforms!

It all depends over the level of adoption taking place all over the world. When the usage is high automatically the government is responsible to keep its citizens on the safer side. Thus by this the market will get limited that could keep the derivatives that are preferred much while the rest will go unused. This derivatives will get used same as now without getting into regulated market, because entering the regulated network will cause a big change in the growth pattern.

They have already banned such services in the US, and even then American traders would still find a way to participate in such market activities even though they are barred from 'legally' participating with these services. There's still VPN that they can use if they are still serious on getting the action, and for one I think services wouldn't mind at all.

deribit operates from the netherlands, and it looks like the dutch are pushing fast towards (presumably FATF-compliant) crypto regulation: https://cointelegraph.com/news/dutch-ministers-call-for-cryptocurrency-cash-use-regulations

do you think they'll become like binance, hopping from one country to the next fleeing regulators? or will they do what localbitcoins did and go into full on compliance mode?

If US citzens are using VPN then how they are funding Bitmex and how they can withdrawn money.I know people with blocked bitmex accounts because of vpn use.Buy they are small players whales are living in different world

bitmex only supports BTC deposits and withdrawals. they don't have verification tiers like fiat exchanges. USA traders can just register an account and trade through VPN and deposit/withdraw bitcoins. same as binance except no 2 BTC daily withdrawal limit. many USA traders do this. occasionally people like this have gotten their accounts flagged and bitmex closes their account or demands KYC from them.

On the one hand, the concerns of the regulators are clear. Many people want to invest in ICO or buy cryptocurrency on the stock exchange, but there is a lot of scam in ICO, and in general cryptocurrency is a rather risky investment. Perhaps this is what motivates their decision regulators. Do not forget that Bitcoin is a competitor to the dollar, and if it continues to develop at the same rapid rate, then it is quite possible that the US government will start fighting Bitcoin or has already begun this struggle

i dont believe any country or government can limit crypto investments. if you want to invest in you can invest. No any government can stop or check you in this decentralized ecosystem. you can find alternative solutions to join.

USA is just want to have assurance in cryptocurrency. Though, there are many crypto trraders in USA, I think having limit in crypto derivatives is just for a warning to all citizen that crypto might be disastrous someday. Yes, we never know when crypto will really decline and that is factual. that is why until now, many government are not yet convinced of what cryptocurrency achieved. They treat crypto as a threat with their economic stability regarding with their citizens risk investment.

In my opinion, the US already controls the majority of countries except for Russia and China. If they get angry, they will bring "democracy" to any country, even it's outside their jurisdiction. There are so many examples, mainly about terrorism and drug trade.

I don't know mate. If we want Bitcoin to be mainstream, it has to play within the rules. Anyway, we should not aim to create ETFs/derivatives, it is still a long way to go. Businesses need to get more accountable and professional so that less P&D, scam, hack, etc., to protect new inexperienced users.

I guess "limit" is a very broad term, what are they going to limit? Like the leverages maybe? Maybe they won't allow x100 leverages? That is a limiting for example whereas not allowing people to do it at all is also very limiting, we need to know more about what they are planning to limit before we can decide if it is a good thing or not.

I have always been a firm believer that x100 leverages are wrong and should not exist, they are so fragile and can be lost so quickly that people who are doing x100 leverages rarely ever make money and exchanges take all of that, so I assume if they limit it to only x50 then it would be very awesome, that is more realistic and even though it is still risky it is not unrealistic like the x100 one. I hope they won't make it illegal though, they did it for binance for example so lets hope it won't be banned.