How To Invest in ICOs From the United States
Initial Coin Offerings or ICOs are the hottest thing in cryptocurrency today. Coin Schedule currently shows a list of dates for new Alt Coin ICO dates. The problem with investing in many ICOs is they don't allow residents of the United States to participate by investing in the coin. Well, I have found the solution for investing in the next big ICO.
Why U.S. Residents Can't Invest in Initial Coin Offerings
The United States government is working to regulate cryptocurrencies and treat them as securities. It is not that the coin project doesn't want you as an investor, they just don't want to deal with the headaches of supplying investor background data to the government in the future. If you want to invest in an ICO and live in the United States, just follow my instructions below.
Using a VPN to Invest in ICO
Virtual Private Networks (VPNs) are the most popular way to change your location so that you can invest in an ICO from the United States. The most common way has been to pay a monthly service fee for a VPN but I have found a much better way.
Opera Browser VPN
Using the Opera Browser you are given the option of browsing the web using an IP address from many different countries that include Netherlands and Germany. This bypasses the IP checker that could exclude you from buying coins during an ICO. Below you can follow the steps or watch the YouTube video I created showing how you can invest in ICOs that don't allow U.S. investors.
Watch Video for Investing in ICOs Using Opera Browser VPN
Steps to Install and Use Opera Browser VPN to Invest in Cryptocurrency ICO
- Download and install the Opera browser at http://opera.com
- Open Opera and Click on the Red "O" at the top left hand side of the browser and go to settings
- Click on Privacy and then enable VPN
- In the URL field you should see a little blue box that says VPN, click on it and change the country to your desired browsing destination
- Visit your coin ICO page follow their instructions to purchase
They are becoming much more strict now. Not only do many of the ICO's want a copy of your passport to prove you are not a U.S. citizen, they also want a copy of a utility bill to prove you live there. Sad that we can't invest in projects we believe in during the ICO phase & have to wait until it hits the exchange. I need some out of the country friends to buy some for me then send to my wallet! :)
The problem comes when the ICO asks for your passport and legal residence and if you are a citizen of the US or not. Any way around those? I'd love to know. Because the US Congress isn't interested in "protecting us". They just want to protect accredited investors so they can benefit and become even richer, while we all become poorer. Bastards.
Dude your wrong. 80% of icos are scams nowadays the govt. Is pissed other countries are robbin gullible americans. Its a good thing. Trust me i jus uncovered a ponzi scheme and been dealing with sec and cftc. What their mad about is they cant stop it from happening. The team i found was croatian and promoters americans. The croatians are straight and it makes them so pissed.
Just be aware that if you do this some ICOs require to you sign a disclaimer or acceptance of some terms and conditions explicitly stating you are not a US Citizen or resident. Some even threaten to hand over your info "to the authorities" if you are found to have violated this.
Even if you use a VPN remember that you also leave a trail because of any email you use, where your cryptocurrency to pay into the ICO came from, any subsequent interactions with the ICO site. A lot of people in the US are going to do something like transfer some BTC or ETH to a local wallet, then contribute that to the ICO (because you often need a non-exchange source of funds otherwise your ICO coins may end up owned by Coinbase, Poloniex etc.).
That kind of funding pattern leaves and easy trail of funds to the ICO and back to Coinbase etc. which investigators good, at some future dates pin on you. I personally think it's unlikely thanks to the current Trump dministration's aims to defund or incapacitate watchdogs that could do it - like the SEC - but you never know.
If you are paranoid or investing huge amounts you could not afford to lose then you might want to a) think about whether investing in an overseas ICO is for you, b) think about more robust anonymity policy.
If the ICO is not a security since 51% of its issued tokens are owned by its members who can vote and receive dividends, then there is no reason to fear SEC laws even by US citizens.
can you explain more?
If you use a VPN and pay with a private coin such as monero from an exchange not based in the US, would that provide protection?
No ICO I've looked into accepts Monero (or it isnt advertized ;) )
Stephenrowlison which current or previous ICOs would be examples of what you speak? Thank you.
The reality is that the target of any investigation is generally going to be the ICO, not the investors. Pay your taxes if you make gains. The rest is just consumer protection, and while helpful, it throws too large a net, as usual.
Besides, if you know enough and care enough to get around the blockade, let's face it, you might as well be an accredited investor.
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STOPA VPN has become largely insufficient given most ICOs adoption of KYC policies. In some cases you might be able to provide false information depending on how thorough a given ICO's verification process is. I wouldn't bank on it though.
Yea KYC policies make it virtually impossible to get around identification. You would probably have to get a person internationally to purchase the funds and then send them your way. That's the only way I can surmise getting involved with an ICO. Alas, private keys to an outside entity. Ya...no.
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The question is: Is it illegal for a US citizen to participate in an ICO?
Thats what i want to know
me too
No it's not illegal. There are some available to us 'Mericans. You just have to dig longer. IMO you are better off waiting for the initial dump off since the price will more than likely sink lower than preico prices then you can get better returns if the ico is going to actually do what they say they are going to do or "revolutionalize the ledger through p2p" or some other bs...too many scams out there so keep frosty!
Yeah but the problem is when you accept the terms and conditions... Your investment could be voided even if you use a VPN tunnel.
Generally, laws applicable to consumer protection, would target the ICO, not the consumer.
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STOPIn the US you must now be an accredited investor registered with the SEC to legally participate in ICO sales.
That's the same problem I am facing. Some ICOs geo-block if you are from USA. Using VPN has helped gain access to the site but some have KYC which is impossible to clear if your ID is a US ID. Ones that don't have KYC can be accessed using VPN. Here
is one of the websites I use to track ICOs. The rightmost column gives quick information about geo-restrictions, KYC requirement etc for each coin. I have found this to be very helpful while shortlisting coins. Hope this helps! :) If it did, here are a few ICO's I invested in and have a referral code. If you like the ICO, maybe you can use my referral. :)
CoinLoan - Smart contract loans similar to SALT - https://coinloan.io/?r=7547712084
ScorumCoin - To monetize sports fans that create quality content - https://scorumcoins.com/en-us/affiliate/ge1PESM
It seems to me that you would have to lie somewhere along the way in order to accomplish this, thereby putting your $ at further risk.