Does Crypto Exchanges Intentionally Violate Regulatory Conditions of Countries?

[King Belieal]

Crypto exchanges have had recent running battles with several governments of different countries. Within the space of just one month, India and Nigeria has banned crypto exchanges. The major issue is always violation of regulatory provisions.

Why is it that these crypto exchanges always fail to meet up with regulatory provisions of countries? Is it something that their business models don't allow them to meet up?

 

[Webster]

Crypto exchanges have had recent running battles with several governments of different countries. Within the space of just one month, India and Nigeria has banned crypto exchanges. The major issue is always violation of regulatory provisions.

Why is it that these crypto exchanges always fail to meet up with regulatory provisions of countries? Is it something that their business models don't allow them to meet up?

It depends on both the country and the regulatory structure; one of the ironies about the U.S. with regard to crypto is that while a lot of Americans still look askance at crypto currencies, the regulatory structure here in the U.S. is regarded as strong enough to allow for robust trading without fear of government interference.

 

[King Belieal]

Crypto exchanges have been banned in many countries including Canada and Japan. And they always say that it is they refused to obey regulatory laws. Maybe, because they know that people would always patronize them with a VPN, that's why they don't respect local laws.

 

[Webster]

including Canada

Is Cryptocurrency Legal in Canada? | Wealthsimple

Cryptocurrency is legal in Canada, although regulation has restricted where you can trade. Here’s what you need to know.

www.wealthsimple.com

Quoting....

How do you buy crypto in Canada legally?
--You can buy crypto legally on centralized and decentralized exchanges, and also through brokerage platforms like Wealthsimple. So long as you report your income, you can trade crypto as you would in any other jurisdiction that allows crypto trading.

That said, it remains to be seen whether the current roster of trading venues will always open their doors to Canadians. In 2021, several major exchanges pulled the plug on their Canadian offering after Canadian securities regulators cracked down on unregistered crypto exchanges. This forced customers of those exchanges to empty their accounts by the end of 2021. To avoid something like this happening, stick to a regulated crypto exchange.

Translation: yes, crypto is legal in Canada but as always, just as financial institutions are bound legally by KYC regs, customers should do their due diligence before investing with a crypto seller.

 

[King Belieal]

Is Cryptocurrency Legal in Canada? | Wealthsimple

Cryptocurrency is legal in Canada, although regulation has restricted where you can trade. Here’s what you need to know.

www.wealthsimple.com

Quoting....Translation: yes, crypto is legal in Canada but as always, just as financial institutions are bound legally by KYC regs, customers should do their due diligence before investing with a crypto seller.

I don't know but what I know is that Binance is not operational in Canada because of regulatory issues. That's what @Jordan of RIF told us. Till now, RIF doesn't have Crypto payment because the owner of the forum lives in Canada.

 

[Webster]

I don't know but what I know is that Binance is not operational in Canada because of regulatory issues. That's what @Jordan of RIF told us. Till now, RIF doesn't have Crypto payment because the owner of the forum lives in Canada.

Point taken; I was simply clarifying as to the broader question of whether crypto is legal in Canada.

 

[magnus2022]

I don't belive that cryptocurrency exchanges are intentionally violating financial regulations of some countries. The only problem is that cryptocurrency exchanges are undermining fiat currencies of many countries. People are becoming more interested in crypto and its derivatives. Cryptocurrency is likely to displace fiat currencies if not properly checkmate.

 

[King Belieal]

I don't belive that cryptocurrency exchanges are intentionally violating financial regulations of some countries. The only problem is that cryptocurrency exchanges are undermining fiat currencies of many countries. People are becoming more interested in crypto and its derivatives. Cryptocurrency is likely to displace fiat currencies if not properly checkmate.

So how difficult was it for Binance to just register in Nigeria as a business entity since it was doing business in Naira? And registering in Nigeria for a business of it's status wouldn't have been difficult at all.

 

[Webster]

I don't belive that cryptocurrency exchanges are intentionally violating financial regulations of some countries. The only problem is that cryptocurrency exchanges are undermining fiat currencies of many countries. People are becoming more interested in crypto and its derivatives. Cryptocurrency is likely to displace fiat currencies if not properly checkmate.

In some cases yes (looking at you, Binance) but in most cases, Magnus, its' because crypto is increasingly becoming a serious alternative to fiat currency.

 

[Suba]

Initially Binance implemented a rule, withdrawals under $2k did not require KYC, this weakness was exploited by users to launder money for criminal financing. So it's not the intention of crypto exchanges to deliberately violate government regulations, but rather that the government is always looking for mistakes by crypto exchanges.

 

[King Belieal]

Initially Binance implemented a rule, withdrawals under $2k did not require KYC, this weakness was exploited by users to launder money for criminal financing. So it's not the intention of crypto exchanges to deliberately violate government regulations, but rather that the government is always looking for mistakes by crypto exchanges.

But it is the responsibility of the crypto exchanges to make sure that their platforms are not used for illegal things. That's not the responsibility of governments.

 

[Suba]

But it is the responsibility of the crypto exchanges to make sure that their platforms are not used for illegal things. That's not the responsibility of governments.

Although crypto exchanges must be responsible for the illegal actions of their users and crypto exchanges should treat them more strictly, so that they can possibly prevent illegal actions. Apart from violating government regulations, there may also be economic impacts that the government does not like.

 

[Stardom22]

l think that the crypto exchanges are not doing that intentionally. Most countries have decided to ban the usage of the cryptocurrency.

 

[King Belieal]

I think that the crackdown on crypto exchanges in some countries has made them more aware and ready to abide by regulatory conditions.