Is WhiteBIT Legal in US? 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 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 WhiteBIT.
So, let us tell you if WhiteBIT is allowed in the US and if it's safe to use for trading.
Is WhiteBIT legal in US? 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 | Kraken | |
|---|---|---|---|
Government-regulated |
Yes |
Yes |
Yes |
Tier-1 regulation |
Yes |
Yes |
Yes |
U.S regulation |
No |
No |
Yes |
FCA U.K |
No |
No |
Yes |
AUSTRAC in Australia |
No |
No |
Yes |
DFSA in UAE |
No |
No |
No |
AMF in France |
No |
No |
Yes |
Spain |
Yes |
No |
Yes |
Germany |
No |
No |
Yes |
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 |
Belgium, Cyprus, Italy, Poland, Netherlands, Canada, Bermuda |
Open an account |
|
|
|
Other WhiteBIT Security Factors to Consider
| WhiteBIT | Bybit | Kraken | |
|---|---|---|---|
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 |
|
|
|
Short summary about the WhiteBIT exchange
The WhiteBIT exchange is a universal platform for trading and exchanging cryptocurrencies. In addition to basic (simplified) trading, it offers spot, margin, and futures trading. Bitcoin, Litecoin, Ethereum, Ripple, DASH, and dozens of other altcoins are available on the exchange. Fiat currencies include USD, EUR, TRY, GBP, PLN, UAH, BGN, and CZK. For futures trading, leverage of up to 1:100 is provided, while margin trading offers leverage of up to 1:10. In addition to active trading, users can invest in blockchain projects with interest payments through Crypto Lending. The exchange features a standard referral program, and trading commissions are fixed. A TradingView-powered web terminal and a mobile trading application are available. The company also offers its own GitHub solution for the cryptocurrency business.
| 💰 Account currency: | Cryptocurrencies, currencies |
| 🚀 Minimum deposit: | 0.0005 BTC |
| ⚖️ Leverage: | 1:100 |
| 💱 Spread: | Market |
| 🔧 Instruments: | 330 cryptocurrencies, with a total of 820 trading pairs, including 190 for futures and 630 for spot trading. |
| 💹 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
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 WhiteBIT in the US?
The WhiteBIT cryptocurrency exchange can be chosen by clients from US, although there are certain nuances. The exchange does not have a financial license, but that is rather because the financial regulator of US 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 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.
