FTX is a well-known cryptocurrency margin trading exchange which offers a wide range of contracts with laser-fast execution and high levels of liquidity. For this reason, many people are deciding to move from exchanges like BitMEX over to FTX, but are US citizens allowed to trade on it?
FTX does not accept US customers due to the strict financial laws in place in the USA. This is true with most cryptocurrency derivatives exchanges. On the other hand, US residents can trade crypto on regulated spot exchanges like Coinbase.
FTX offer leveraged trading products which means that you can trade with more than your account balance. Although this increases profit opportunity, it also carries greater risk. The USA looks to protect its residents from losing money and thus bans the use of platforms like FTX, you can see this with the strict gambling restrictions in place in the US too.
Is there a way around it?
Technically, yes, there is a way around it. FTX, like other crypto exchanges, uses something called geo-blocking to stop users from restricted countries from using the exchange. They do this by seeing where your IP address is, and if it is from one of the banned countries, they will block you from the site.
With the now wide availability of VPNs, this can be bypassed, but it is not recommended since you may be breaking the law in your jurisdiction and FTX’s terms of service. Nevertheless, if you a looking for a VPN, my personal favourite is NordVPN.