Which Crypto Exchanges work in New York?

Coinbase, Coinbase Pro, and Gemini are the only crypto exchanges ranked in the top 10 that are licensed to work in New York.

Crypto in New York

If you are new to crypto investing and living in New York, you may not be aware that New York introduced the BitLicense in 2015 which means any company wanting to buy, sell, store, or issue a virtual currency, like crypto, would need a license. Most of the top 10 crypto exchanges do not have a Bitlicence and are therefore they are not available to customers based in New York!

Exchange Score is taken from the Coin Market Cap website.

What is the New York Bitlicense?

Anyone who wishes to carry out regulated cryptocurrency-related transactions within the state of New York must have a BitLicense issued by the New York State Department of Financial Services.

  • Crypto companies have to comply with Federal / State financial and tax laws.
  • Companies have to show that they have sufficient assets to ensure their financial stability
  • Crypto companies have to have a security or trust account in US dollars to protect customers’ assets and funds.
  • New products, business models, services, mergers, or partnerships must be approved by the DFS
  • License holders must maintain records and accounts for at least 7 years. 
  • Crypto companies are also subject to quarterly, annual, and bi-annual inspections and financial audits.
  • License holders must have Anti-money laundering and Cybersecurity programs in place, as well as KYC requirements for customers.
  • Crypto companies must also disclose the risks of cryptocurrencies in all their advertising and marketing to protect customers’ interests.

Currently, No other U.S. state has taken such a proactive approach to licensing crypto.

Is it illegal to use a crypto exchange that is not licensed in New York?

Our research suggests that it is not currently illegal for a buyer to use an unlicensed Exchange in New York. It is the exchange that is at fault for selling to you.

However, platforms that may then be forced to close their services may not give much warning to affected customers before closing accounts!

This means you could lose access to your crypto held on the exchange, or suffer financially from having to move your crypto assets in an unplanned way.

You should do your own research as the crypto world changes quickly. Crypto companies are currently building a lobbying army to influence state-level regulation.

Crypto Exchanges without KYC

New York Crypto Exchanges with a Bitlicense: Comparison Table

COINBASE

COINBASE PRO

GEMINI

No of coins

150+ 

150+ 

63 

Exchange score

8.4

8.4

6.9

Payment methods

Bank Transfer; Debit Card ( 3.99%); Wire transfer (fee $10) Paypal; Apple Pay; Google Pay

Bank Transfer; Debit Card ( 3.99%)Wire transfer(fee $10); Paypal; Apple Pay; Google Pay

Bank Transfer; Debit Card (3.49% fee); Wire transfer;

Interface

Beginner friendly

Advanced Tools 

Beginner friendly

Verification required

KYC

KYC

KYC

Transaction Fees

1.49%

0.00% to 0.60%

Fee of $0.99 to $2.99 based under $200 1.49% for trades over $200,

Security Features

2FA via SMS or authenticator app. Cold storage and multi-signature wallets

USD balances are FDIC insured (up to $250k)

2FA via SMS or authenticator app. Cold storage and multi-signature wallets

USD balances are FDIC insured (up to $250k)

Whitelisting pre-approved addresses

2FA,

FDIC-insured USD balances up to $250k; Gemini Wallet digital insurance, U2F security with a hardware key, and cold storage

Transactions Supported

Buy, sell, send, receive, and exchange

Buy, sell, deposit, withdraw, trade, stop order, time in force order, and limit order

Buy, sell, trade, deposit, and withdraw

Crypto Exchanges in New York F.A.Q.’s

Kucoin does not support US residents, therefore it does not allow New York residents to sign up.

Crypto.com is available in 49 U.S. states but is not currently available in New York as it does not have a Bitlicense.

As of March 2021, Binance is not available to any customers living in New York.

No one in the United States should ever use Binance.com, there is a special website for US-based customers at https://www.binance.us/en/home

Due to US regulations, Binance US is more strict about handling KYC and AML of new customers.

The biggest difference between Binance.US and regular Binance is that there are fewer coins supported and fewer features available.

Kraken is not available in New York.

The company ceased its operations in the state in 2015, as a direct consequence of the introduction of the BitLicense.

Coinmama does not work in New York.

There are two different FTX platforms. The main FTX platform is available to clients outside the United States. The more basic FTX.US is available to U.S. customers in all states except New York.

What is the best way to buy crypto in New York?

Despite the restrictions of the BitLicense, if you’re looking to buy crypto the safest and easiest way to do so is still via an exchange.

Coinbase Pro has the lowest fees and supports the greatest number and types of transactions. however, if you are a beginner, you may prefer to open a Coinbase account first and move your assets over to a Coinbase Pro account when you become more confident and wish to use more advanced trading tools.

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