Why do some ICOs not allow American investors?

[HealthSecurities]

I've seen many ICOs that do not allow American investors and not sure why. Is there a reason for something like this?

[sinner]

cuz you don't wanna deal with the US legal system.. if an ICO blocks US people, its safer for the project/company/organization/protocol/etc.

[HealthSecurities]

cuz you don't wanna deal with the US legal system.. if an ICO blocks US people, its safer for the project/company/organization/protocol/etc.

So if a US crypto start up doesn't allow US investors, it might not be a scam?

I thought any US crypto start up that doesnt allow US investors must be a scam

[gidaahmad]

Yes, I've seen ICO which also blocked IP Address USA. Incidentally I also follow the ICO bounty program. I still do not understand clearly. They never mentioned the reason but I forgot. However, this will be different if US investors use other countries' VPNs to access the ICO. Honestly I want to know the obvious reason.

[LoveInThisCryptoClub]

I've seen many American-based companies that don't allow American investors for ICOs.

I've been involved in a few. You can have someone trusted overseas get them for you. I found a nice gentleman in a telegram chat.

[ZaoXhou]

I've seen many American-based companies that don't allow American investors for ICOs.

I've been involved in a few. You can have someone trusted overseas get them for you. I found a nice gentleman in a telegram chat.

But it's not like it's all of the sudden legal? Or isn't it illegal to begin with, do these ico's have to reject us residents?

[HealthSecurities]

I've seen many American-based companies that don't allow American investors for ICOs.

I've been involved in a few. You can have someone trusted overseas get them for you. I found a nice gentleman in a telegram chat.

I see. My biggest concern was them being scam coins, but if that's the case I was gravely mistaken.

[LoveInThisCryptoClub]

Yes, I've seen ICON which also blocked IP Address USA. Incidentally I also follow the ICO bounty program. I still do not understand clearly. They never mentioned the reason but I forgot. However, this will be different if US investors use other countries' VPNs to access the ICO. Honestly I want to know the obvious reason.

Or you can use a VPN like this user... No idea why I never thought of that myself lol

[HealthSecurities]

I've seen many American-based companies that don't allow American investors for ICOs.

I've been involved in a few. You can have someone trusted overseas get them for you. I found a nice gentleman in a telegram chat.

But it's not like it's all of the sudden legal? Or isn't it illegal to begin with, do these ico's have to reject us residents?

If someone can answer this question, I'd be in their debt!

[LoveInThisCryptoClub]

I've seen many American-based companies that don't allow American investors for ICOs.

I've been involved in a few. You can have someone trusted overseas get them for you. I found a nice gentleman in a telegram chat.

But it's not like it's all of the sudden legal? Or isn't it illegal to begin with, do these ico's have to reject us residents?

I might be wrong about this but I think you have to register your ICO with a certain govt agency to make it legal. Look at the dragonchain ICO, allowed american investors but it was also registered with some US agency.

[Munz77]

I've seen many ICOs that do not allow American investors and not sure why. Is there a reason for something like this?

Mostly all ICO's are scams, ideas that don't actually require tokens or the development teams are eastern bloc mobsters. Its the equivalent of the nigerian scams of the late 90's. USA is just first to regulate, more will follow and all that will be left are 3rd world countries that don't give a damn about their citizens.

[GreenRivers]

American ICOs are regulated and you have to pay a fee to register and even then you might not get approved.

So much easier for these people to make it outside the USA and have USA investors use a proxy or have someone buy it for them.

It really doesn't change much if US investors aren't allowed. Most companies meet their goals and American investors who want the tokens bad enough will find a way.

[LoveInThisCryptoClub]

I've seen many ICOs that do not allow American investors and not sure why. Is there a reason for something like this?

Mostly all ICO's are scams, ideas that don't actually require tokens or the development teams are eastern bloc mobsters. Its the equivalent of the nigerian scams of the late 90's. USA is just first to regulate, more will follow and all that will be left are 3rd world countries that don't give a damn about their citizens.

That's not true. I'd say 20% of ICO are scams, the others are legit trying to build a company. Some ICOs though have repetitive or horrible ideas so no one invests.

[HealthSecurities]

I've seen many ICOs that do not allow American investors and not sure why. Is there a reason for something like this?

Mostly all ICO's are scams, ideas that don't actually require tokens or the development teams are eastern bloc mobsters. Its the equivalent of the nigerian scams of the late 90's. USA is just first to regulate, more will follow and all that will be left are 3rd world countries that don't give a damn about their citizens.

It is easy to spot a scam though - usually the idea has been around already and there is absolutely no mention of a team or Linkedin profiles.

But how about those companies that have all that information but no US investors? They don't seem like scams at all, but the no US investor part puts me off a bit.

By the way, what do you mean by eastern bloc mobsters?

[Munz77]

By the way, what do you mean by eastern bloc mobsters?

Check out cartaxi ICO, you will see what i mean. Perfect example of scam that will come undone anytime in the next 6 months.

[DroidR17A]

It doesn't necessarily mean that the ICO is a scam, but it does mean they are trying to bypass a securities rating, and should be viewed as a high risk investment. The same reason a lot of new tokens are distributing by airdops and campaigns, except there's no financial risk for the consumer with the drop/bounty option.

[anzach87]

us gov allow you only to breath some times

[moala]

SEC has banned ICOs because 90% of ICOs are scams

[kaizer28]

Many or most foreign brokerage houses and banks refuse to deal with U.S. persons because of the onerous compliance requirements. As the author quite correctly states near the end of the article

"FATCA requirements are so restrictive and obtrusive that many foreign banks and financial institutions just refuse to do business with American customers.

[cryptopussies]

Because theres a lot of irregularities in most ICOs and the SEC has banned the ICOs.