If you are from New York State, you may have discovered that not all cryptocurrency exchanges allow you to buy crypto through them. Since the introduction of Virtual Currency Business Activity Licenses, also known as BitLicenses by the New York Department of Financial Services (NYDFS) in 2015, residents of New York State cannot purchase assets. crypto exchanges only from certain licensed crypto exchanges.
Can you buy cryptocurrency in New York?
Out of over a hundred crypto exchanges and other crypto asset management sites, only about twenty are registered with the NYDFS. The limited number of crypto asset sites licensed to operate in New York State leaves a few choices for purchasing Bitcoin or other crypto assets.
What crypto exchanges are allowed to operate in New York?
Coinbase is one of the world’s largest cryptocurrency trading platforms, with over 30 million users in 100 countries. One of the oldest crypto exchanges, Coinbase, was founded by Fred Ehrsam and Brian Armstrong in 2012. Initially, they only sold Bitcoin to customers, but grew into one of the busiest exchanges in the world of cryptography.
- Healthy selection of currencies
- Has never been hacked
- One of the easiest interfaces to use for beginners
- High fees
- Customer support is uncertain
- Website subject to crashes
A subsidiary of Coinbase, Coinbase Pro has quickly grown into one of the go-to exchanges in the crypto world, mainly due to its intuitive, user-friendly platform and low fees.
- Being a Coinbase grant, its user interface is intuitive and easy to use
- Insured against platform hacks
- High liquidity
- Customer support is lackluster
- Trading fees for retail investors are high
BitPay started as a merchant processor in 2011, founded by Tony Gallippi and Stephen Pair. Its user interface is intuitive and easy to use. The BitPay app is a secure, non-custodial, open source wallet application that allows customers to buy, store, trade and spend cryptocurrencies based on the company’s open source CoPay wallet.
- Possibility to pay in your own currency
- Easy to use
- They offer an encrypted debit card
- Bitpay was hacked in 2015, but CoPay was never hacked
Initially based in Luxembourg and founded in 2011 by Nejc Kodrič and Damijan Merlak in a garage for only 1000 €, BitStamp has grown into one of the leading crypto exchanges in Europe.
- Excellent customer support
- Supports payment in Fiat currency to buy cryptocurrency
- User interface is complicated to use
- It’s a peer-to-peer sale – you don’t buy coins from the exchange itself.
Launched in 2018 by financier Zac Prince, the platform offers several financial services, including paid accounts, crypto trading accounts, loans backed by crypto assets as collateral, and encrypted credit cards.
- Backed by major financial lenders like Fidelity and SoFi
- Mostly free or low cost services
- Pay one of the best interest rates on Bitcoin accounts
- New York based company
- User interface more difficult for a novice user to understand
Renowned as one of the first exchanges to provide crypto asset backed loans, Nexo is a cryptocurrency exchange that makes it easy to get fiat currency loans against your crypto assets. Based in Switzerland, this crypto trading platform is operational in more than 100 countries.
- It is well insured against platform hacks.
- High Yield Interest Bearing Accounts
- Simple to use and intuitively designed app for users of all skill levels.
- Few tutorials for new users.
- Cannot buy cryptocurrencies on the Nexo platform itself
Celsius is another player in the decentralized finance (or DeFi) industry that has recently gained popularity due to its controversial lending practices in providing unsecured loans to high net worth clients. It has also gained momentum due to the ease of finding fiat currency loans at a minimum interest rate.
- User-friendly mobile application.
- Great rewards program
- Can disburse payments instantly through the Celpay program
- Limited choice of cryptocurrencies
- Very few learning resources for new users
Which crypto exchange do we recommend if you are in New York?
After weighing all the pros and cons, we recommend that you buy your Bitcoin and crypto as a New York resident from Coinbase or Coinbase Pro. Both platforms are well funded with high liquidity, have not had any significant security or hacking issues, and overall are highly reliable platforms.
What crypto exchanges can you earn interest with in New York?
Due to NYDFS reporting requirements and other entanglements, interest-bearing accounts could only be opened on the following exchanges:
In conclusion, the NYDFS requirements for granting BitLicenses may create less choice as to where to buy Bitcoin if a New Yorker. Still, it turned out to protect the average New York resident from fraud or misrepresentation from a website touting investment opportunities in the crypto world.