U.S. user activity increases on major cryptocurrency platforms unlicensed in the country

New data reveals significant engagement by U.S. users with cryptocurrency exchanges that officially prohibit trading within the United States. According to Sensor Tower, Bybit, Bitget, and OKX collectively recorded nearly one million U.S.-based monthly active users in August 2024.

These platforms restrict U.S.-based trading to comply with regulatory requirements. However, reports suggest that some users may be circumventing these restrictions using methods such as virtual private networks (VPNs) and false identification. CoinDesk reports indicate that despite the implementation of measures like IP geoblocking and Know Your Customer (KYC) protocols, there are still ways for users to bypass detection. These actions raise concerns about the platforms' adherence to compliance standards and could lead to increased regulatory scrutiny.

Concerns have emerged following Binance’s $4.3 billion settlement with U.S. authorities last year. Since then, Binance has enhanced its compliance efforts by investing in Anti-Money Laundering (AML) protocols, KYC measures, and cooperation with law enforcement. Reports indicate that comparable enforcement measures for other exchanges have been less prominent.