Quote from: UserU on February 29, 2020, 07:10:10 AM

Quote from: squatter on February 29, 2020, 06:39:44 AM

Yes. The operator of a similar platform was subject to an SEC enforcement action because he failed to register with the SEC as a securities dealer.

If you don't want to register, you need to prohibit US customers, and you should probably implement some basic measures like IP geolocation bans to cover yourself legally.

It won't make a difference whether you use bitcoins, USDT, euros, or whatever. These requirements pertain to the service itself, not the type of collateral customers use.

I just wonder, why many forex brokers don't want to register with SEC?

There is all sorts of red tape before the SEC will let you do business:

Quote

A broker-dealer may not begin business until:

it has properly filed Form BD, and the SEC has granted its registration;
it has become a member of an SRO;
it has become a member of SIPC, the Securities Investor Protection Corporation;
it complies with all applicable state requirements; and
its "associated persons" have satisfied applicable qualification requirements.

Then there's all the record keeping and periodic disclosure requirements. There are also fees to consider too. Then you need to pay lawyers who can see that everything gets done properly.

I can see why brokers -- especially small ones -- would want to avoid this entirely.