Is ByBit Legal In The US?

Bybit is one of the top crypto margin exchanges that enables users to buy, sell, and trade cryptocurrencies. The platform offers beginners and advanced users trading options through its spot, margin, and perpetual contracts. However, despite its popularity, the cryptocurrency exchange is not supported in all regions. This begs the question, is Bybit legal in the US? This guide seeks to answer whether US citizens can use ByBit to buy and trade cryptocurrencies.

Can You Use ByBit In The US?

No, US citizens are not permitted to trade on ByBit due to strict regulations in the United States that do not approve crypto derivative platforms. Residents who live in the USA are strictly prohibited as per the ByBit Terms of Service. The exchange complies with these restrictions by banning IP addresses that originate from the United States.

Nonetheless, there are alternate ways for users who want to trade on Bybit while residing in the US. The most common method to trade on ByBit from the US is using a virtual private network or VPN. However, using a VPN to bypass logging an IP address from the US is also in breach of the Terms of Service and is not advisable.

Why Was Bybit Banned in the US?

Although crypto trading is permitted in the US, it is still a largely restrictive activity due to ongoing regulation by the US Securities and Exchange Commission (SEC) and other related agencies. These regulators have taken a strong stance in monitoring and supervising the burgeoning crypto industry. Given this, crypto exchanges are expected to initiate KYC measures for all customers and install AML protocols to protect against illicit transactions. Due to the strict exchange registration process, several platforms like Binance and FTX, have created subsidiaries to cater to the needs of crypto investors in the USA.

While ByBit is a popular no-KYC crypto exchange, all trading platforms are also expected to register with the SEC to operate in the US. US investors are denied access because the platform is not registered with or regulated by any US government agency. Moreover, the US does not completely approve of crypto derivatives trading, which accounts for a vast majority of ByBit’s operation. However, ByBit has cited the ambiguity surrounding crypto laws in the country as the reason it does not allow US traders on its platform.

How To Use ByBit In The US?

It is possible to access the full suite of trading services on ByBit from the USA by using a VPN. The IP address will need to be set from a country that is permitted to use ByBit. As there are no strict KYC requirements, individuals can create an account with ByBit and begin trading crypto from the US. Non-verified accounts will be limited to a maximum withdrawal of 2 BTC per day. It should be noted that accessing ByBit from a restricted country (via VPN) breaches the Terms of Services, and the account can be suspended including any assets held within a ByBit wallet. Using a VPN from a permitted country is allowed.

To use ByBit with a VPN, follow these basic steps:

1. Download a VPN Service. The first step is to download VPN software. Once the download is complete, install the software, create a new account, and sign in. Click on the power-like icon of a country that is supported by ByBit to connect.
2. Create an account on Bybit. Visit the ByBit website and click on the ‘Sign Up’ button. Input the email address and password and click the ‘Create Account’ icon to proceed to the next stage. As Bybit does not support US residents, they will not be able to complete the KYC verification step. USA customers will have restrictions on the daily BTC withdrawal limit.
3. Deposit cryptocurrency. Bybit supports crypto deposits making it possible for users in restricted regions to fund an account. With this, US investors can easily transfer crypto from an external wallet or platform to ByBit for trading. Tap on the ‘Deposit’ button and select ‘Crypto.’ Select the crypto to be deposited and copy the wallet address. Insert the copied wallet address into the recipient address bar in the external wallet and how many coins are to be transferred. Confirm the transaction and the crypto asset will be deposited in a couple of minutes.
4. Begin trading. Type the ticker symbol of the required asset in the search bar and select a preferred trading pair. Insert how much of the asset to purchase and click on the ‘Buy’ button to complete the transaction.

Is ByBit Legal To Use In The US?

There are mixed reviews online regarding the legality of Bybit. This is because no financial body regulates the activities of the cryptocurrency exchange in any of the countries where it operates. However, the platform upholds global financial laws. New users are required to complete the exchange’s know-your-customer (KYC) verification process to unlock more platform features. This requirement aligns with stipulated anti-money laundering (AML) measures to curb illicit transactions and terrorism financing.

The cryptocurrency exchange also has a strong security system comprising 2FA, address whitelisting, and offline cold wallet storage. In its four-year time, the platform has not been breached or hacked.

Popular Alternatives To ByBit For The USA

There are several alternative crypto trading platforms to ByBit that are legal to use in the US. The most popular exchanges with similar features, markets, and fees are Coinbase, eToro, Kraken, FTX.US, and Binance.US. These platforms are licensed to operate within the US.

EXCHANGE	CRYPTO ASSETS	TRADING FEES	RATING	PROMOTION	WEBSITE	REVIEW
Coinbase	241	0.4% (maker), 0.6% (taker)	Rating We provide an overall weighted average rating out of 5 stars. Our ratings are based on objective criteria like the ease of use, fees, deposit methods, customer support and availability. Our reviews are not influenced by 3rd parties. Click here for further information about our rating methodology and a full list of categories we review against. 4.7 / 5	$5 BTC bonus (USA only)	Visit Coinbase	Coinbase Review
Kraken	222	0.16% (maker) and 0.26% (taker)	Rating We provide an overall weighted average rating out of 5 stars. Our ratings are based on objective criteria like the ease of use, fees, deposit methods, customer support and availability. Our reviews are not influenced by 3rd parties. Click here for further information about our rating methodology and a full list of categories we review against. 4.8 / 5	None available at this time	Visit Kraken	Kraken Review
eToro	79	1%	Rating We provide an overall weighted average rating out of 5 stars. Our ratings are based on objective criteria like the ease of use, fees, deposit methods, customer support and availability. Our reviews are not influenced by 3rd parties. Click here for further information about our rating methodology and a full list of categories we review against. 4.7 / 5	None available at this time	Visit eToro Cryptocurrency is offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. [website domain name] is not an affiliate and may be compensated if you access certain products or services offered by the MSB.	eToro Review
Binance.US	100+	0.1%	Rating We provide an overall weighted average rating out of 5 stars. Our ratings are based on objective criteria like the ease of use, fees, deposit methods, customer support and availability. Our reviews are not influenced by 3rd parties. Click here for further information about our rating methodology and a full list of categories we review against. 4.4 / 5	Trade $100 and Earn $10	Visit Binance.US	Binance.US Revie…