Bybit is one of the most trustworthy and appreciated cryptocurrency trading exchanges worldwide. Launched just a few years back in 2018, it has acquired the market astonishingly.
The platform offers top-of-the-line crypto trading products with all of the renowned crypto assets, and that too, with very minimal trading fees.
These one-of-a-kind features are the reason behind Bybit’s explosive growth in the cryptosphere.
And I know how irritating it is when you cannot use this amazing crypto trading platform; it is even more irritating if you don’t know the reason behind it.
That is why I am here to tell you why you cannot use Bybit in the US.
Why is Bybit banned or NOT allowed in the US?
You cannot use the Bybit exchange in the US as the exchange itself has prohibited all the IP addresses in the country.
As a matter of fact, when you create an account on Bybit, you are required to mention that you are not a citizen of the US, and only when you certify that ‘you are not,’ will you be allowed to trade on the platform.
Though the exchange is entirely secure and safe, with no reported security breaches or hacks, the key reason the exchange has been banned is that it doesn’t comply with the norms of the SEC (US Security and Exchange Commission).
The US has a citizenship-based tax system rather than a territorial tax system like in other countries.
This means that even if an American or Greencard holder lives overseas, they have to file taxes directly to the US government, with certain deductions allowed.
In contrast, if a citizen of any other country lives overseas, they need to pay zero taxes to their home country since they don’t reside in the same country anymore.
Because of this, the IRS (Internal Revenue Service) wants to monitor Americans and American money abroad.
That is why the USA forces banks and financial entities worldwide to conform to reporting. Or they would be restricted from accessing American Financial Network.
And that is why it is easier for exchanges 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 Bybit does.
It doesn’t seem that Bybit will comply with the US crypto norms anytime soon, so it will be great for crypto traders in the US to look for alternative crypto trading platforms.
The fact that Bybit crypto exchange is among the top crypto trading exchanges around the world with top-notch security features like two-factor authentication, address whitelisting, trading features like TradingView and automated bots are not at all ignorable.
Which makes it even more appealing to check them out. To learn more about the exchange, you can also check out the ByBit tutorial.