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Is it safe to use ByBit in the US?
The policy to not offer services to US residents is a Bybit decision, made of their own accord, due to hazy regulations and seemingly random, sporadic actions taken by the SEC.
It is not illegal for you to use ByBit in the US, it is illegal for ByBit to operate in the states.
Before registering on the platform, traders must certify that they do not live in the US. Because ByBit does not yet adhere to the regulatory laws of financial regulatory authorities like the Security and Exchange Commission (SEC), it is illegal in the US.
- Bybit restricts access to its services to users from certain countries, including the US.
- It is not illegal for US-based customers to use Bybit, but the platform is supposed to prevent US-based users from accessing it.
- Bybit requires KYC only for transfers and withdrawals and can terminate accounts of US-based users if they find out they are US persons.
- Using a VPN to access Bybit is legal, but US-based users need to pay taxes on any profits made and report their profits to the IRS as Bybit doesn’t 1099-K.
- Decentralized platforms like GMX run on the ETH and AVAX networks and offer leverage of up to 150x, but it is important to do proper research before using any platform.
Can You Use Bybit in the US? Is It Illegal?
Yes, you can but it is risky. Using ByBit in the US is not illegal but against ByBit ToS and they could ban you if you’re discovered.
Here are the steps to use Bybit in the US with a VPN:
- Choose a reputable VPN service provider such as ExpressVPN, AtlasVPN, or CyberGhost.
- Install the VPN software and connect to a server located outside of the US.
- Create an account on Bybit by entering your email address and generating a password.
- Start trading on Bybit.
It is important to note the following:
- Bybit is not accessible to US residents due to regulatory laws on crypto assets enforced by the US government.
- Accessing Bybit from the US is possible through a VPN service provider, but it is risky.
- Users are advised to pay taxes on their Bybit transactions.
- Other cryptocurrency exchanges such as Coinbase offer trading services to US residents.
- Awareness of the risks associated with using an unregulated exchange is essential.
How to Use and Trade on ByBit in the US (step by step)
If you want to use Bybit in America, you must do it through a virtual private network (VPN). A VPN encrypts your internet traffic and makes it look like you are connecting to another location. In this way, you bypass the ban on exchanging digital currency. Let us take a closer look at how to use Bybit in the USA.
1. Download and install a VPN app
First things first, you need to download a VPN application. There are numerous free applications out there, but we recommend ExpressVPN because of its simple interface and easy setup process. Once downloaded, open the program and select Connect to the VPN server. You will see a list of servers around the world. Choose a server located outside the US and log into the account.
2. Register an account
Once logged in, you will be asked to register an account. Select Create Account and follow the prompts. Enter your email address and choose a strong password. Click Continue to proceed.
3. Verify your identity
Next, you will be prompted to verify your identity. Enter your phone number and confirm the code sent to your mobile device. Click Next.
Best VPNs to trade on ByBit
ExpressVPN
One of the finest pricing per GB options can be found with ExpressVPN. Anywhere in the world, you can use it to safely access the internet. We’ve put together this fast guide on how to set up your account and trade on Bybit to help you get started using Bybit.
Step 1: Select Your Plan
Select our Express VPN’s Basic plan if all you want to do is browse the web anonymously without making any purchases. Choose Premium if you want to make purchases.
Step 2: Download ExpressVPN
It’s simple to download ExpressVPN. Simply adhere to the directions given.
Step 3: Access ByBit
Once you’ve installed ExpressVPN, all you need to do to use Bybit is enter your email address and generate a password.
AtlasVPN
Another VPN that you may use to access Bybit in the US is AtlasVPN. The procedures for using this platform are as follows:
Step 1:
After downloading, install Atlas VPN on your device.
If you use an Android or iOS device, you must download the Atlas VPN app from the Google Play Store or the Apple App Store. If you use Windows, you can download and install the program from this page on our website.
Step 2:
Select the preferred subscription method.
The app is offered by Atlas VPN in both a free and premium version:
Downloading the free version of Atlas VPN from the Google Play Store, Apple App Store, or directly from our website for Windows users will allow all users to use it. The free edition includes the Dutch and American servers.
In contrast, the premium edition offers the quickest server connection speeds and access to an extra 20 server locations.
Step 3:
Link to the desired destination (the US in this case)
CyberGhost
The final VPN we’ll discuss is CyberGhost, which you may use to use Bybit in the US. Here is a detailed explanation of how to utilize it:
Step 1: Pick a subscription
Simply select the strategy that best fits your budget. The “1 Month” plan is still the best option if you’re just starting out and unclear about what to expect, even though the “2 Year” plan is the least priced.
Step 2: Download CyberGhost
After you’ve paid for the membership, proceed to “My Account,” which should be in the top right-hand corner of your screen. Enter your login details when prompted, which normally include a password and the username or email address you decide upon when joining up.
Select “My Devices” after logging in, then click the “+” sign to add a new device. Click “install” after selecting “Windows.” Click the “Download Now” button as you scroll down. You will then see a new window emerge, and once you click “save,” the downloading will begin.
IMPORTANT NOTE: ByBit often asks for KYC when you want to withdraw your money from their platform. It is risky to use it, so we recommend Kucoin instead.
All traffic leaves a footprint, there are 100 variables passing through the browser and your signature is unique.
VPNs on the other hand leave no footprint which is the biggest footprint of all.
Knowing this, it is prudent not to let your balance get too high, cause if they want they can just ban you and take your funds for TOS violation.
Possible solutions if you don’t want to to use VPN but want to trade on Bybit:
– Incorporating in another country
– Having a friend with foreign citizenship be the owner of the account
Why can’t you use ByBit (and many other exchanges) in the US?
Besides chasing down money overseas, part of the problem revolves around the USA having a citizenship based tax system versus a territorial tax system.
Other countries have a territorial based tax system. If an American or greencard holder lives overseas, he/she files taxes to USA anyhow (with certain deductions allowed).
If a citizen of another country lives overseas, he pays 0 to his home country since he does not live there anymore.
As a result of this, the IRS wants a way to monitor Americans and American money abroad. So, USA forces banks and financial entities worldwide to conform to reporting. Or they shut them down to access to American financial network.
Of course, it is easier for these companies and banks in other countries to simply ban Americans to avoid the legal and bureaucratic headache of dealing with the laws of an external country. So that is exactly what they do. I’m sure they have enough issues with their own laws.
Conclusion – Is ByBit legal in US?
By using a VPN, you can access Bybit from the United States, where this popular crypto trading platform is not available. This is possible because the VPN will provide you with a different IP address from a country where Bybit operates. However, it is important to use a reputable VPN provider that offers strong encryption algorithms to protect your financial information and assets, as security should be a top priority for anyone using Bybit or any other crypto exchange platform.
Although Bybit is not available in the US and does not comply with the country’s financial laws, some traders have found a way to bypass this restriction by using a Bybit VPN. By using this method, traders can gain access to Bybit’s 0.05% maker-taker fees and above 0.2% spot trading fees. It is also worth noting that with a single subscription, you can use the VPN on unlimited devices. However, it is important to ensure that the VPN provider invests in advanced encryption and security technologies to keep your wallets safe from hacking attempts. Overall, Bybit is considered one of the best exchanges in the crypto market.
FAQs
Yes. All you have to do to hide your real IP address is connected to a VPN server located outside of the US. You can connect to a server in a nation where Bybit is accessible by using a Virtual Private Network (VPN). You’ll get a new temporary IP address as a result, making it appear as though you’re accessing Bybit from a different place. After that, you should be free to use Bybit as usual.
Yes, it is legal to use a VPN to use Bybit from the US. Technically, you cannot use Bybit if you reside in the US because your IP address will be prohibited. However, you will be able to utilize Bybit if you set up a VPN because the exchange does not require KYC or identity verification.
Yes, customers from the United States who are residents there are not permitted to use this platform or to trade on it. Other nations, like the United Kingdom, are also subject to this restriction.
No, you can’t get into legal trouble using Bybit in the United States. However, US citizens are typically prohibited from using Bybit. The site itself decided to bar American traders from using Bybit. They took this action as a result of the murky US crypto rules.
So how do you fund your Account since the address of the card or bank is in USA. Despite using VPN.