How to Get Around States’ Crypto “Soft Bans”
There are a few states in the United States that are less friendly to cryptocurrency than others…
Residents of these jurisdictions will not be able to use certain crypto exchanges to buy, sell, or trade cryptocurrency. This is because these states have laws that either tax or regulate digital assets in a way that deters exchanges from doing business with its residents or restricts their participation entirely.
For example, Binance.US is not available to residents of New York, Hawaii, Texas, or Vermont.
Coinbase isn’t available in Hawaii, either.
All of the aforementioned states have restrictions with particular crypto exchanges, but New York and Hawaii tend to be the most problematic.
But remember – exchanges are simply marketplaces for buying and selling cryptocurrency, and there are hundreds available. Just because you can’t use one doesn’t mean there isn’t another available.
Today, whether you live in any of those states, or visit relatives there, or even if you just love the idea of totalfinancial freedom, I’ll show you the best places to trade crypto in your state.
And if you’re thinking to yourself, “I don’t live in any of those places, so it’s got nothing to do with me,” I’ve got a friendly warning…
Even if you haven’t encountered this issue before, crypto is still relatively new, and regulations are in their infancy. In case you do ever encounter an issue with your state and a particular exchange, I want you to know how to work around it.
The Best Exchanges for New York and Hawaii Residents
New York and Hawaii have exceptionally finnicky cryptocurrency laws.
In 2015, more than 50% of residents voted to pass legislation to create a “BitLicense” that each exchange must apply for to do business in New York.
Many exchanges opted to exit New York entirely, but a few stuck around.
This includes Coinbase and Gemini, which are the best exchange options for New York residents.
As for Hawaii…
Legislators passed a law in 2016 that requires crypto exchanges retain cash reserves as collateral for any crypto it holds. For example, if one Hawaii resident owns $10,000 worth of Bitcoin (BTC), the exchange needs to hold $10,000 in cash.
A lot of exchanges find this onerous, so the most popular one – Coinbase – has ceased doing business in Hawaii entirely.
But there are still options available, including Gemini and Kraken.
The exchanges mentioned here have been approved by the American Institute for Crypto Investors Chief Crypto Strategist Nick Black.
However,… there’s a world of great cryptocurrencies out there, and not all of them are listed on Coinbase, Kraken, or Gemini.
Here’s where to find those…
How to Find Alternative Crypto Exchanges
A fantastic resource for determining where to find a particular cryptocurrency is CoinMarketCap.com.
This site hosts a massive library of cryptocurrency data, including indexes of which exchanges trade each asset.
Visit the home page and search the cryptocurrency you’re looking for in the top right corner of the screen, highlighted in the screenshot below. Click on the cryptocurrency you’re looking for as it appears in the search bar.
For this example, we’ll use Cardano (ADA).
Once you’re on the page for the coin you’re searching for, click the “Markets” tab selected in blue in the screenshot below.
Scroll down, and you’ll see a list of exchanges where that cryptocurrency is available to purchase. Below you’ll see a list of the exchanges that support Cardano.
You should bookmark this website and use it as a resource to find out where to buy any cryptocurrency you’re looking for.
Note that some of these exchanges are not Nick Black-approved. The best way to protect your assets when using an alternative exchange is by storing the bulk of your cryptocurrency in an offline “cold” wallet you control.
Click here to learn about the best wallets to secure your cryptocurrency.