Various reports have surfaced on Reddit discussing how OKCoin is cracking down on US customers in a way that affects their ability to participate in the futures markets. As many people are well aware of, the futures market are a great tool for speculation and Bitcoin price manipulation, making it one of the most successful services offered by any exchange. The question is: has this decision anything to do with US regulations, or is something else going on?
Also read: Japanese Regulators Hold Meeting on Bitcoin Legislation
Bitcoin exchanges from all over the world are very wary and careful when it comes to offering services and products to customers in the United States. Unlike most other countries in the world, the US is actively working on Bitcoin regulation, and the landscape can change at any given time.
Should a drastic change occur, it will affect any and all Bitcoin exchange operators servicing US customers. Many companies feel it is not worth taking any risks over, and appropriate action needs to be taken. In the case of OKCoin, restricting Bitcoin futures trading for US customers seems to be what is going on right now.
However, the way the company has gone about doing so is not sitting well with most customers, as the futures market has been locked out completely. US customers who attempt to access this part of the OKCoin platform are greeting with a prompt message stating: “Sorry, this function is not available to you due to regulation”.
OKCoin is not the first exchange to stop offering this type of functionality to US customers, as Bitmex is facing a similar struggle. Leveraged Bitcoin trading is -officially speaking – off-limits to US customers, although there are ways to circumvent this problem, according to the Reddit post.
The decision made by OKCoin forced US Bitcoin traders to look for alternative options, of which there aren’t too many available right now. 1Broker is the only platform that comes close to offering such a service, although the service is still in an experimental state. More of these platforms are needed for US traders sooner rather than later.
Don’t be mistaken in thinking the decision by OKCoin will have a major impact on the Bitcoin price anytime soon. Most of the trading volume is still originating from China, and they can dictate the price for quite some time to come. However, as US traders are left with little to no options to influence the price by themselves, a new paradigm could be created.
It will be interesting to see how the ability to trade Bitcoin futures will evolve over the next few years. Regulatory efforts can help Bitcoin to gain a more legitimate appeal, but it also causes a fair bit of confusion and hassle for companies active in the space. Only time will tell where this market is headed.
What are your thoughts on the decision made by OKCoin? Let us know in the comments below!
Source: Reddit
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