New York sets high standards for crypto platforms. The BitLicense helps keep things safe. This guide lists approved exchanges. It covers how they work. You will find tips to pick one. All info comes from official sources and recent updates.
What Is the BitLicense?
The BitLicense is a license from the New York Department of Financial Services (NYDFS). It applies to firms that handle crypto for others. This includes trading platforms. Firms must meet rules on security and money laundering. The license started in 2015. It aims to protect users. Costs can reach over $100,000 to apply. Many firms skip New York because of this. As of 2025, over 30 firms hold licenses or charters. Not all are full exchanges. Some focus on custody.
Why Does New York Have Strict Crypto Rules?
New York wants to stop fraud. It also fights money laundering. The state sees crypto as risky. Rules make platforms check user IDs. They must hold reserves. This builds trust. But it means fewer choices for users. Some platforms left the state. Others got licenses to stay. Rules apply to any firm serving New York residents.
List of BitLicense-Approved Crypto Exchanges in New York
Here is a table of key exchanges open to New York users. All have BitLicense or trust charters. Data is from NYDFS as of September 2025. We focus on those for everyday traders.
| Exchange | License Type | Key Features | Supported Coins (NY-Specific) | Fees | Best For |
|---|---|---|---|---|---|
| Coinbase | Virtual Currency and Money Transmitter | User-friendly app, wallet, learning rewards | Bitcoin, Ethereum, stablecoins, select altcoins | 0.5%-3.99% spreads | Beginners |
| Gemini | Limited Purpose Trust Charter | Secure storage, insurance, earn interest | Bitcoin, Ethereum, over 100 coins (NY-approved) | 0.35% maker/taker | Security-focused users |
| Robinhood Crypto | Virtual Currency and Money Transmitter | No commission trades, stock integration | Bitcoin, Ethereum, Dogecoin, limited list | Spreads only | Casual traders |
| Bitstamp | Virtual Currency | Advanced charts, API access | Bitcoin, Ethereum, Ripple, over 80 coins | 0.3%-0.5% | Experienced traders |
| eToro NY | Virtual Currency and Money Transmitter | Social trading, copy others | Bitcoin, Ethereum, select altcoins | Spreads 0.75%-5% | Social features |
| Cash App (Block, Inc.) | Virtual Currency and Money Transmitter | Simple buys, P2P sends | Bitcoin only | 1.5%-3% | Bitcoin fans |
| PayPal | Virtual Currency and Money Transmitter | Buy in app, pay with crypto | Bitcoin, Ethereum, Litecoin, Bitcoin Cash | Spreads 0.5%-1.5% | Everyday payments |
| Bullish | Virtual Currency and Money Transmitter | Institutional tools, deep liquidity | Bitcoin, Ethereum, major pairs | Variable, low for volume | Advanced users |
| bitFlyer USA | Virtual Currency | Low fees, lightning network | Bitcoin, Ethereum, select others | 0.1%-0.15% | Low-cost trades |
| itBit (Paxos) | Limited Purpose Trust Charter | OTC trading, custody | Bitcoin, Ethereum, stablecoins | 0.35% | Large trades |
Note: Coin lists are limited in New York. Only approved assets like Bitcoin and Ethereum are common. Check each site for updates.
How to Choose a Crypto Exchange in New York
Pick based on your needs. Look at these factors.
Check License Status
Use the NYDFS list to confirm. Avoid unlicensed platforms. They may block you later.
Review Security
Seek two-factor login. Cold storage helps. Insured funds protect against hacks.
Compare Fees
Spreads add up. Low-volume trades cost more. Volume discounts help active users.
See Supported Assets
New York limits coins. Most offer Bitcoin and Ethereum. Few allow altcoins.
Test User Experience
Apps should be easy. Good support matters. Read reviews on response times.
Consider Extra Tools
Some have staking. Others link to stocks. Pick what fits your goals.
Detailed Reviews of Top Exchanges
Coinbase
Coinbase started in 2012. It got its BitLicense in 2017. The app is simple. Buy with bank links. Earn by learning about coins. In New York, no margin trades. Pros: Easy setup, free wallet. Cons: Higher fees. Sign up: Verify ID, link bank, buy crypto.
Gemini
Gemini is New York-based. It has a trust charter since 2015. Focus on rules. Offers insurance on funds. Trade over 100 coins. In New York, full access. Pros: Strong security, low fees for active users. Cons: Fewer beginner tools. Sign up: Upload ID, fund account, start trading.
Robinhood Crypto
Robinhood got its BitLicense in 2019. No fees on trades. Buy crypto like stocks. In New York, no withdrawals yet. Pros: Simple, no costs. Cons: Limited coins, no transfers. Sign up: Download app, verify, deposit funds.
Bitstamp
Bitstamp is old, from 2011. Licensed in 2019. Good for pros. Low fees on big trades. In New York, basic features. Pros: Trusted, API for bots. Cons: Complex for new users. Sign up: Register, verify, wire funds.
eToro NY
eToro got approval in 2023. Copy top traders. Social feed helps learn. In New York, limited assets. Pros: Community focus. Cons: Spread fees. Sign up: Join, verify, follow traders.
Other Options
Cash App suits Bitcoin only. PayPal works for quick buys. Bullish, new in 2025, fits institutions. bitFlyer offers cheap fees. itBit handles big deals.
Crypto Taxes in New York
Gains are taxed. Short-term like income. Long-term lower rates. New York adds state tax. Track buys and sells. Use software for forms. Report to IRS and state. NYDFS does not handle taxes. See IRS rules for details.
Can You Use DEXs or VPNs in New York?
DEXs like Uniswap are in a gray area. No custody means no license needed. But risks exist. NYDFS may act. VPNs to bypass rules can break terms. Accounts may close. Stick to licensed options.
Steps to Start Trading Crypto in New York
- Pick a licensed exchange.
- Sign up with email.
- Verify ID with photo and address.
- Link bank or card.
- Deposit funds.
- Buy approved coins.
- Store in wallet.
For more on basics, see our internal link to /crypto-basics.
Common Questions About Crypto Exchanges in New York
Is Binance Legal in New York?
No. Binance lacks a BitLicense. It blocks New York users.
Is Kraken Available in New York?
No. Kraken left due to rules.
What Coins Can New York Residents Trade?
Mainly Bitcoin, Ethereum, stablecoins. Platforms must approve others.
How Much Does a BitLicense Cost?
Application fee is $5,000. Total costs higher with legal fees.
Are There Alternatives to Centralized Exchanges?
DEXs offer privacy. But use with care. P2P trades are legal if no business.
Why Are So Few Exchanges in New York?
Rules are tough. Many prefer other states.
Final Thoughts
New York offers safe crypto trading through licensed exchanges. Options like Coinbase and Gemini provide good starts. Rules may change. Check NYDFS for updates. Trade small at first. Track taxes. This keeps things simple and secure. For more guides, visit our internal link to /blog.
