Is WhiteBIT Legal in Netherlands? Is WhiteBIT 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 WhiteBIT services among users in the Netherlands. However, questions remain regarding its safety and legal status within the Netherlands. Traders Union experts have addressed this concern by crafting a detailed review that explores both the pros and cons of using WhiteBIT.
So, let us tell you if WhiteBIT is allowed in the Netherlands and if it's safe to use for trading.
Is WhiteBIT legal in Netherlands? Does it have a license?
WhiteBIT 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 WhiteBIT'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, WhiteBIT's safety level is also influenced by other factors outlined below.
| WhiteBIT | Bybit | MEXC | |
|---|---|---|---|
Government-regulated |
Yes |
Yes |
No |
Tier-1 regulation |
Yes |
Yes |
No |
U.S regulation |
No |
No |
No |
FCA U.K |
No |
No |
No |
AUSTRAC in Australia |
No |
No |
No |
DFSA in UAE |
No |
No |
No |
AMF in France |
No |
No |
No |
Spain |
Yes |
No |
No |
Germany |
No |
No |
No |
Singapore |
No |
No |
No |
MFSA in Malta |
No |
No |
No |
Seychelles |
No |
Yes |
No |
Other countries |
Lithuania, Poland, Czech Republic, Bulgaria |
Austria’s Financial Market Authority (FMA), Georgia, Kazakhstan |
|
Open an account |
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Other WhiteBIT Security Factors to Consider
| WhiteBIT | Bybit | MEXC | |
|---|---|---|---|
2FA |
Yes |
Yes |
Yes |
Verification (KYC) |
Yes |
Yes |
Yes |
Successful hacks |
No |
Yes |
No |
Cold wallet storage |
Yes |
Yes |
Yes |
Investor protection fund |
Yes |
Yes |
No |
Open an account |
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Short summary about the WhiteBIT exchange
The WhiteBIT exchange is a universal platform for trading and exchanging cryptocurrencies. In addition to basic (simplified) trading, there are spot and margin trading. Bitcoin, Litecoin, Ethereum, Ripple, DASH, and dozens of other altcoins are traded on the exchange. Fiats are represented by the USD and the EUR. For margin trading, 1:100 leverage is provided. In addition to active trading, there is the possibility of investing in a blockchain project with interest payments (from Crypto Lending). The exchange has a standard referral program, and trading commissions are fixed. There is a TradingView web terminal and a mobile trading application. The company offers its own GitHub solution for the cryptocurrency business.
| 💰 Account currency: | Cryptocurrencies, currencies |
| 🚀 Minimum deposit: | 0.0005 BTC |
| ⚖️ Leverage: | 1:100 |
| 💱 Spread: | Market |
| 🔧 Instruments: | Cryptocurrencies, USD, EUR |
| 💹 Margin Call / Stop Out: | Yes |
WhiteBIT Pros and Cons
👍 WhiteBIT Pros:
•Bitcoin, dozens of altcoins and tokens, 10 fiat currencies, including the USD and the EUR;
•large trading volumes, high liquidity, multilevel security system;
•basic trading for beginners, spot and margin, P2P exchanger, and free multicurrency account;
•most options for depositing/withdrawing funds such as e-wallets, bank cards, and transfers;
•a simple and profitable system for investing in blockchain projects of crypto exchange affiliates;
•the commission does not change - 0.1% of the trade amount, and no additional fees or charges;
•FAQs on the basics of crypto trading, a demo token for education and training.
👎 WhiteBIT Cons:
•communication with the exchange only through the website and email;
•there is no advanced training, except for Crypto Lending.
Rules and Regulation
Licensing in the Netherlands
The Netherlands doesn't have a single crypto license. Regulations depend on activity:
- if you operate a platform for exchanging cryptocurrency or hold client crypto assets in custody, you'll likely need to register with the Dutch Central Bank (De Nederlandsche Bank, DNB) under the Anti-Money Laundering and Anti-Terrorist Financing Act (Wwft);
- for other crypto-related businesses like mining or offering wallets, the regulatory picture is less clear. However, depending on your specific activity, Wwft registration or other financial licenses might still be applicable.
Investor protection in the Netherlands
The Netherlands doesn't have established formal investor protection schemes specifically for cryptocurrency. However, some investor protection exists for those using registered crypto exchanges and custodians. These entities are subject to DNB regulations that promote fair trading practices and compliance with the Anti-Money Laundering (AML) procedure.
Taxation in the Netherlands
In the Netherlands, cryptocurrency taxation falls under the purview of the Dutch tax authority, known as the Belastingdienst.
Tax rates are progressive and can range from 0% to 51.75% depending on the total income and the amount of capital gains.
Do I recommend using WhiteBIT in the Netherlands?
The WhiteBIT cryptocurrency exchange can be chosen by clients from Netherlands, although there are certain nuances. The exchange does not have a financial license, but that is rather because the financial regulator of Netherlands does not issue the licenses to crypto exchanges in general. There have been certain security-related incidents, but those very singular cases. The reputation of the exchange can be considered standard.
FAQ
Can I work with crypto exchanges considering that they don’t have a license in Netherlands?
The fact that a crypto exchange does not have a license doesn’t mean that traders from Netherlands 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.