According to a study by Inca Digital, traders in the United States are circumventing federal laws prohibiting them from accessing offshore exchanges to trade high-risk cryptocurrency derivatives.
What happened: US traders place leveraged bets on whether virtual assets like Dogecoin (CRYPTO: DOGE) and Bitcoin (CRYPTO: BTC) is used to foreign exchange like. rise or fall FTX and BinanceThe Wall Street Journal reported on Friday, according to a study by Inca Digital.
Inca mainly searched Twitter Inc.s (NASDAQ: TWTR) social media platform are coming to a close. Of the 2,000 Twitter accounts owned by cryptocurrency derivatives traders, 372 were among those based in the United States, according to Inca.
See also: How to Buy Dogecoin (DOGE)
Sam Bankman-Fried, CEO of FTX, told the Journal that the exchange had taken steps to identify and remove the US users identified by Inca, adding that they only had about 0.01% of the trading volume of FTX off.
According to Inca, merchants mainly use virtual private networks or VPNs to bypass US regulations.
Petrol Gas Take: Cryptocurrencies have seen extremely high volatility in recent months – they plummeted significantly after hitting all-time highs.
The Commodity Futures Trading Commission reiterated its warning against trading offshore exchanges in a statement to the Journal, saying that clients “are likely to have little or no protection when trading with unregistered firms operating outside of the US”.
Trading in “altcoins” – as smaller cryptocurrencies are often called – has increased, driven by interest in Dogecoin and knock meme coins like Shiba Inu (CRYPTO: SHIB), which involve significantly higher risks than established counterparts such as Bitcoin and ether (CRYPTO: ETH).
See also: Why is Dogecoin Moving Today?
Dogecoin, for example, is up 3406% since the start of the year but is down 73% from its all-time high of $ 0.7376 in May.
Bitcoin is up 32% year-to-date but 40% lower than its all-time high of $ 64,863.10 in April.
Price action: Dogecoin was trading 3% lower at $ 0.1994 at press time. Bitcoin was trading 3.78% lower at $ 38,773.81.
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