The US Department Of Justice Is Huffing And Puffing At Foreign Crypto Exhanges

in LeoFinance •  10 months ago  (edited)

The DoJ is warning foreign exchanges that they must comply with US laws and regulations concerning the Bank Secrecy Act and KYC/AML regulations - even for their non-US customers. The DoJ is has prepared a framework for its approach to financial crime in the crypto space.

The basis why the DoJ believes it has jurisdiction over transactions between non-US residents on exchanges not on US soil is this (VASP stands for Virtual Asset Service Provider meaning crypto exchanges):

“The Department also has robust authority to prosecute VASPs and other entities and individuals that violate U.S. law even when they are not located inside the United States. Where virtual asset transactions touch financial, data storage or other computer systems within the United States, the Department generally has jurisdiction to prosecute the actors who direct or conduct those transactions.”

So, only if an exchange on foreign soil owned and managed by foreign nationals whose customers are all non-US residents does not allow bank transfers from US banks and does not use any cloud-based or other data storage or other services as part of its IT systems based in the US it should be safe from the Empire. Otherwise its owners and managers will risk criminal charges in the US and extradition requests from the US government if US law is not complied with.

I think this is a bit far fetched. Americans, I'm sorry you have to pay for this crap through your taxes. Please try and vote the bad people who draft laws that facilitate overreaches like this out of office.

I wonder how this would apply to Hive in a potential future where regulators have become even more aggressive than they're now and Hive is a thousand times larger than it is now and no longer flies under the radar. The internal exchange is a DEX. But Hive has a lot of American witnesses. Should they all be voted out before US authorities enforce KYC on every Hive user in case that becomes an actual threat? Much of the infrastructure of Hive heavily relies on US-based cloud services. There is no limit to what the fuckers in the US Govt can get into their power tripping minds. To fully future proof Hive, it should it have full readiness to cut all ties to the United States when it comes to its infrastructure and witness pool?


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It's pretty crazy the amount of power the US seems to have when it comes to situations like this. You'd also think other countries would tell them they have no jurisdiction. Doesn't seem to happen though.

I've said in my Twitter feed for the last couple years now that I think it's just a matter of time till we wake up one morning and discover a bunch of international exchanges have been raided. It will probably be in collaboration with several international financial watchdogs / enforecment agencies. I also suspect they'll do it all at once as a show of force against the industry.

The bottom line is the world is controllec by bankers who also control government policy in many ways. They're not going to go out without a fight. The IMF has already written several articles about their fear of cryptocurrency as well. I'm pretty sure similar questions have been raised at the UN.

Honestly, I'm surprised we haven't seen more action taken already, I'm in no way condoning government action, I'm just saying I'm surprised we haven't seen more

I actually think we have seen the beginning of the end of centralized exchanges.

The rise of the DEX is looking better and better. Once we start seeing some serious trade volume, people will flock to those platforms!

Baseless blather using fear tactics that remind me of the old Soviet Union. They can’t even prosecute legacy system thieves (Wells Fargo). However, crypto world CYOA...

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They did bring charges against BitMEX. When it comes to effectively clamping down on the banks, that really seems to be a different matter. Shows whose pockets they're in...

Yes because options are a huge business. Unfortunately you have to think like a gangster because that is who they are. Total decentralization fixes this. :)

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Look on the bright side. The American Empire is doomed. 😅

It never ceases to amaze me how my government thinks that other countries should, but of course, accept that the U.S. has the right to impose its laws on other countries but, oh no, not the other way around.

I have mixed feelings about the American Empire as long as another aspiring empire is right at our doorstep: the entire Baltic region is more secure when the USA is able to keep Russian ambitions at bay.

The ideal situation would be one where there are multiple equally strong centers of power globally in constant disagreement on many issues. That way, it would be possible for smaller entities to maintain freedom for themselves.