Is Bybit Legal in US? Is Bybit Safe?
Choosing a trustworthy cryptocurrency exchange is crucial as it directly impacts the safety and security of your digital assets. The high risk of scams in this area necessitates extreme caution from users.
Our analysts have noticed a growing interest in Bybit services among users in the US. However, questions remain regarding its safety and legal status within the US. Traders Union experts have addressed this concern by crafting a detailed review that explores both the pros and cons of using Bybit.
So, let us tell you if Bybit is allowed in the US and if it's safe to use for trading.
Is Bybit legal in US? Does it have a license?
Bybit is a regulated exchange that provides services in most countries worldwide, except for those under international sanctions, such as North Korea, Iran, Syria, Cuba, and regions like Crimea, Donetsk, and Luhansk. Restrictions may also apply based on requests from local regulators. We compared Bybit's level of regulation with the top two global competitors and the top two competitors available in your country. Exchanges with Tier-1 regulation are generally considered the safest. However, Bybit's safety level is also influenced by other factors outlined below.
| Bybit | Binance | Bybit.eu | |
|---|---|---|---|
Government-regulated |
Yes |
Yes |
Yes |
Tier-1 regulation |
Yes |
Yes |
Yes |
U.S regulation |
No |
No |
No |
FCA U.K |
No |
No |
No |
AUSTRAC in Australia |
No |
Yes |
No |
DFSA in UAE |
No |
No |
No |
AMF in France |
No |
Yes |
No |
Spain |
No |
Yes |
No |
Germany |
No |
No |
No |
Singapore |
No |
No |
No |
MFSA in Malta |
No |
No |
No |
Seychelles |
Yes |
No |
No |
Other countries |
Austria’s Financial Market Authority (FMA), Georgia, Kazakhstan |
OAM (Italy), FIU (Lithuania), Swedish Financial Supervisory Authority, Bank of Spain, AFSA (Kazakhstan), CASP (Bahrain), VARA (Dubai), FIU-IND (India), Bappebti (Indonesia), JFSA (Japan), FSP (New Zealand), Securities and Exchange Commission of Thailand, DASP (El Salvador), CNV (Argentina) |
MiCAR (Austria) |
Open an account |
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|
|
Other Bybit Security Factors to Consider
| Bybit | Binance | Bybit.eu | |
|---|---|---|---|
2FA |
Yes |
Yes |
Yes |
Verification (KYC) |
Yes |
Yes |
Yes |
Successful hacks |
Yes |
Yes |
No |
Cold wallet storage |
Yes |
Yes |
Yes |
Investor protection fund |
Yes |
Yes |
Yes |
Open an account |
|
|
|
Short summary about the Bybit exchange
Bybit is a leading cryptocurrency exchange specializing in derivatives trading. Its proprietary trading platform is user-friendly but caters primarily to experienced traders who are comfortable with advanced financial instruments. Integration with TradingView provides seamless market analysis and trade execution. Bybit is regulated by the AFSA (Astana Financial Services Authority - Kazakhstan), holds a preliminary license from the VARA (Virtual Assets Regulatory Authority - Dubai) and secures MiCAR (Markets in Crypto-Assets Regulation) license from Austria’s Financial Market Authority (FMA).
Bybit allows highly leveraged trading of up to 100x with a clear and transparent fee structure. For those seeking alternative investment strategies, Bybit offers copy trading programs for both derivatives and spot markets, enabling users to automatically replicate the trades of successful investors. The exchange provides 24/7 customer support, a safe banking environment, and instant deposits/withdrawals. Additionally, Bybit offers a crypto debit card, allowing users to spend their digital assets on everyday purchases.
| 💰 Account currency: | Cryptocurrencies |
| 🚀 Minimum deposit: | From USD 1 |
| ⚖️ Leverage: | Up to 1:100 |
| 💱 Spread: | From USD 1 |
| 🔧 Instruments: | BTC/USD, ETH/USD, XRP/USD, EOS/USD and BTC/USDT, USDT pairs — ETH/USDT, LINK/USDT, LTC/USDT, XTZ/USDT |
| 💹 Margin Call / Stop Out: | No |
Bybit Pros and Cons
👍 Bybit Pros:
•Convenient trading platform;
•Integration with TradingView;
•Combination of futures and perpetual contracts trading;
•There is an order book;
•It has a minimum entry threshold;
•It is possible to open long and short positions with subsequent mutual recalculation;
•Opportunities for Muslim traders to participate in the crypto market.
👎 Bybit Cons:
•Difficult conditions for trading futures;
•Lacks a mechanism to protect the interests of traders.
Rules and Regulation
Crypto regulations in the U.S.
Cryptocurrency trading in the United States is regulated by various federal agencies, including the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Additionally, certain states may have their own regulatory frameworks governing cryptocurrency activities, adding an extra layer of oversight to ensure compliance with applicable laws.
Crypto investor protection in the U.S.
Regulations enforced by the SEC and CFTC aim to protect investors participating in cryptocurrency trading activities. These regulations focus on enhancing market transparency, preventing fraudulent activities, and ensuring fair trading practices. Moreover, investor education initiatives and disclosure requirements contribute to empowering investors and mitigating risks associated with cryptocurrency investments.
Crypto tax in the U.S.
Profits generated from cryptocurrency trading are subject to taxation in the United States. The Internal Revenue Service (IRS) treats cryptocurrencies as property for tax purposes, meaning that capital gains received from cryptocurrency transactions are taxable. Tax rates on capital gains vary depending on several factors, including the individual's income level and the duration of holding the assets. Additionally, tax reporting requirements ensure compliance with tax laws and facilitate accurate tax calculations for cryptocurrency traders.
Do I recommend using Bybit in the US?
The Bybit cryptocurrency exchange can certainly be recommended for traders from US. The platform is well suited for trading cryptocurrencies. Despite that the company does not have a financial license, as this kind of activity is not subject to licensing in US in general, the exchange has a good reputation. The company’s team has developed reliable account protection and closely monitors the security of the platform.
FAQ
Can I work with crypto exchanges considering that they don’t have a license in US?
The fact that a crypto exchange does not have a license doesn’t mean that traders from US will have problems while working with it. Cryptocurrency exchanges are not subject to licensing in many countries, while there are many exchanges with good reputation. Assess the available information about the exchange and check its reputation.
What security methods for account protection do crypto exchanges employ?
Cryptocurrency exchanges may offer various security methods. These include the two-factor authentication, first and foremost, and also such methods as a security question, additional passwords, etc.
Can an exchange that has had a security-related incident in the past be trusted?
You need to check whether such incidents were regular. If it was one episode several years ago, while the reputation of the exchange is good, you can work with such an exchange.
Should I work with an exchange if I have doubts about its reputation?
No. Always choose the cryptocurrency exchanges that have a good reputation.
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Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
