Thought experiment: Rules around trading dollars for nano

Bear with the metaphor pls. It's relevant I swears:

  1. An arcade allows you to trade in dollars for tokens.
  2. Whether it takes 2 tokens or 4 tokens to play a "game" doesn't really matter
  3. These tokens are roughly pegged to USD, but you aren't playing the game hoping that these tokens appreciate.

You trade your USD to participate in the game. Any appreciation of Nano over time is more of a side-effect

That being said, is there anything particularly illegal around an app that

  1. Asks you to pay N dollars for X Nano.
  2. You participate in the app, either spending/gaining Y Nano over time.
  3. These Nano are verifiably yours to do with what you want. So, you stand only to gain if the app grows in popularity/reach
  4. At some point in the future, you know that it is possible to convert your Nano back to USD (for hopefully a better exchange rate than when you previously "invested")

Is the app considered an exchange if you take USD for Nano?
What if the app never claims to give you the "best/most recent USD-Nano" rate, but offers it at a massive discount?

Food for thought?

Both parties agreed with the transaction, nothing wrong. In the international view of the thing, nothing wrong at all.
Only local gangs (governments) wanting a piece of your transaction for your "safety" would want to prohibit and steal that, that would be anti-ethical, not your transaction.

Under US federal law, the moment you facilitate a transaction of USD for a cryptocurrency, you must comply with FinCEN's AML procedures.

KYC/MTL depends on which state you're operating in, with some states starting to relax their rules

Other countries have their own rules, which I cannot advise you on. My soultion to this is to simply operate in a cryptocurrency without ever exchanging to USD or fiat. If you must exchange in your app, partner with an existing exchange like Kraken or Wirex to let them handle that.