You're right for The US but the reason I said this country is a special case is that is there another country acting similarly?. This country is always trying to impose its own laws on everyone all over the world.
Think about it from the point of view of an exchange platform and let's say you're one. Wouldn't you say to The US, who the fuck are you to give me directives while I'm not in your country? Go chasing your residents, not me.
I totally agree, it's bullshit. I would just be careful to keep them off my site if I didn't want the FBI knocking at my door. Bitmex is shutting down the accounts of Americans (and also Quebec residents) because of government warnings about this. 1Broker took the position that it wasn't their responsibility -- the FBI seized their website for it.
Binance doesn't deal with fiat, correct? Because when an exchange does or doesn't transactions with fiat it's a lot different.
They serve US residents, and on that front, it doesn't matter. That's 99% why they have the KYC policies they do. It's why they sometimes lock accounts and enforce KYC even if you keep under their 2 BTC limit. US law says exchanges doing altcoin trading are money transmitters, so they need to do KYC and file an SAR when they suspect money laundering.
BTC-e but the only option to deal with fiat was via Perfect Money not via banks transactions.
They did bank wires for years, but they stopped at some point, probably due to intermediary banking problems (like Bitfinex).
Take a look at Europe, despite the evil KYC/AML, Europeans can still use an exchange without verification (i.e. with Kraken)
Don't they do direct SEPA transfers to/from customers? I thought
EU regulations required KYC at €1,000.
