In most US states, including California and New York, we offer no services.
Eh? Your offices are in SOMA (a San Francisco neighborhood).
Are you seriously saying that none of your employees have accounts on your own system?
Does not compute.
Correct - an exchange is bound by the regulations in jurisdictions where it services customers. So just as it's illegal for an exchange based, say, in France, to service customers in California without the proper California regulatory compliance measures, it's legal for an exchange based in California to service customers in France even though it can't service customers in California (so long as it has met the regulatory compliance requirements for France).