Is Yobit Legal in US? Is Yobit 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 Yobit 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 Yobit.
So, let us tell you if Yobit is allowed in the US and if it's safe to use for trading.
Is Yobit legal in US? Does it have a license?
Currently, the Yobit is not regulated at the government level, which remains a common scenario in the cryptocurrency market. However, such platforms generally fall short compared to exchanges with Tier-1 regulation, which signifies oversight by top-tier financial authorities such as the FCA (UK), SEC (USA), or ASIC (Australia), ensuring strict compliance with security and operational standards. We compared Yobit with two Tier-1 regulated exchanges to help you make an informed choice
| Yobit | Bybit | MEXC | |
|---|---|---|---|
Tier-1 regulation |
No |
Yes |
No |
Government-regulated |
No |
Yes |
No |
Successful hacks |
No |
Yes |
No |
Cold wallet storage |
Yes |
Yes |
Yes |
Investor protection fund |
Yes |
Yes |
No |
2FA |
Yes |
Yes |
Yes |
Verification (KYC) |
No |
Yes |
Yes |
Open an account |
|
|
|
Short summary about the Yobit exchange
The Yobit exchange is a universal cryptocurrency trading platform. The service has a proprietary trading terminal (browser version only, no mobile trading). Bitcoin, Litecoin, Tether, and many other cryptocurrencies are traded on this exchange. Among fiats, there are the US dollar and the Russian ruble. The company has its own tokenized coin called the YoDefi, which can be used in investment programs. There is also a virtual mining service with daily payments. The YoBit exchange offers a standard investment program with affiliate bonuses of up to 20%. The trading commission on the crypto exchange is fixed at 0.2% of the transaction amount. They employ all major channels for depositing/withdrawing funds, including bank cards and e-wallets. You can trade on the platform without verifying user data.
| 💰 Account currency: | Cryptocurrencies, RUB, USD |
| 🚀 Minimum deposit: | 0.0005 BTC |
| ⚖️ Leverage: | No |
| 💱 Spread: | Market |
| 🔧 Instruments: | Cryptocurrencies, fiat currencies |
| 💹 Margin Call / Stop Out: | No |
Yobit Pros and Cons
👍 Yobit Pros:
•large selection of cryptocurrencies, there are pairs with fiat;
•simple and convenient interface of the trading terminal;
•their service coin, which can be obtained for free;
•well-thought-out investment system;
•profitable affiliate program;
•single commission for all trading operations;
•trading without KYC, which provides complete anonymity.
👎 Yobit Cons:
•there is no mobile trading;
•only USD and RUB among fiats;
•there are no training programs and guides.
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 Yobit in the US?
The Yobit 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.