BitMart is one of the largest cryptocurrency exchanges and has over 9 million users around the world, spanning more than 180 countries, including the United States. Launched in 2017, the global crypto exchange supports more than 1,000 cryptocurrencies to buy, sell, and trade for both novice and seasoned traders.
However, despite the features and benefits, there are some restrictions that come with this popular crypto exchange, especially if you are a US citizen.
In this article, we will talk about whether BitMart is available, legal, or authorized in the US, which a citizen of the United States needs to know before signing up and trading with BitMart.
Is BitMart Available in the US?
Yes, BitMart is available in the United States, along with 180 other countries around the globe. BitMart allows users to buy, sell, and trade major cryptocurrencies, including BTC, ETH, DOGE, and others.
In 2018, BitMart was officially registered as a Money Service Business (MSB) with FinCEN, which is an administrator of US regulators.
However, if you are a US citizen who wants to start using BitMart, you need to be aware of some limitations and requirements.
First, you need to verify your identity and residence by providing your personal information and documents, such as your passport, driver’s license, or utility bill. This is to comply with the anti-money laundering and KYC regulations in the US.
Second, you need to understand that some features and functions are not available for US users due to legal restrictions. For example, as a US-based user, you cannot use its Earn and Lending products.
Is BitMart Legal in the US?
Yes, BitMart is currently legal in the United States, which means US-based users can buy, sell, and trade cryptocurrencies on BitMart. BitMart is registered as a Money Service Business under the Financial Crimes Enforcement Network, or FinCEN, which allows it to operate legally in the US and offer crypto-to-crypto trading to its customers.
BitMart complies with other regulations and restrictions that apply to MSBs in the US. These include not offering securities services, futures trading, margin trading, or tokens that are not approved by US regulators.
Similarly, BitMart also has to comply with other regulations and restrictions that vary by state and federal agencies. Therefore, some states may prohibit or limit BitMart’s activities due to legal or policy reasons.
For example, BitMart does not offer its services to residents of the State of New York. This means that residents of this state cannot use BitMart’s services, such as spot trading, futures trading, OTC trading, and the fiat gateway.
Does BitMart Report to the IRS?
BitMart does not provide any confirmation or clarification on whether it actually reports to the IRS or not. It is possible that BitMart does report to the IRS, but it is not guaranteed or transparent.
Considering BitMart operates as an MSB, it should report to the IRS as a crypto platform operating in the United States. As an MSB, BitMart may be required to report certain information to the IRS, such as the name, address, and transaction details, among other data, of its customers who conduct transactions above a certain threshold or who are involved in suspicious or illegal activities.
BitMart does not provide a year-end statement to its consumers. This does not, however, prohibit you from collecting data and reporting it on your taxes. As a BitMart user, you should not rely on BitMart to report your crypto transactions to the IRS for you.
You are responsible for keeping track of your own crypto transactions and reporting them accurately on your tax return. Since the IRS treats cryptocurrencies as property, as a US citizen, you may have to report your gains or losses and pay taxes accordingly.
What countries can Use BitMart?
There are over 180 countries that use the BitMart exchange. Some of them include the United States, the United Kingdom, France, Canada, Brazil, India, Germany, Japan, Australia, and more.
Additionally, here is a list of geographical locations where BitMart does not provide its services. Some of them include the state of New York, Afghanistan, Burma, China (Mainland), and others.
Which Country does BitMart Exchange belong to?
The BitMart exchange belongs to the Cayman Islands, a British Overseas Territory in the Caribbean. BitMart is registered as a Money Services Business in the U.S. It provides services to users from over 180 countries and regions and has offices in the United States, South Korea, and China.
FAQ’s
1. What is BitMart?
BitMart, situated in the Cayman Islands, is a cryptocurrency trading platform that was created in 2017. The team behind BitMart involves former employees from Amazon, Alibaba, and other major corporations.
BitMart proclaims itself to be one of the world’s best and most secure cryptocurrency exchanges, with over 9 million users. The exchange released the Bitmart Token (BMX) in 2018, which gives token holders trading discounts and other incentives on the exchange.
The exchange has launched several new services as well, including savings products, derivatives trading, and NFTs.
2. Can US citizens use BitMart?
US citizens can use BitMart, except US-based users located in the State of New York. BitMart also does not provide the benefit of earning and lending products.
3. Are there any state restrictions for BitMart in the US?
Yes, in the United States, US citizens based in the State of New York cannot buy, sell, or trade on the BitMart exchange. BitMart does not provide its services in New York, along with 16 other geographical locations.
4. What are the legal and regulatory considerations when using BitMart in the US?
Using BitMart in the US involves some legal and regulatory considerations that you should be aware of.
- BitMart is registered as an MSB with FinCEN, which allows it to offer crypto-to-crypto trading legally to US customers.
- BitMart is not registered with the SEC and cannot offer securities services, such as futures trading, margin trading, or some tokens.
- BitMart does not support some US states, such as New York.
- BitMart requires US users to verify their identity and residence to comply with AML and KYC regulations.
