PrimeXBT US Legal Situation Explained 2023

PrimeXBT is the world’s leading trading platform in the margin trading industry. Since its inception in 2018, the platform has seen exponential growth in the first two years due to its easy user interface, advanced trading tools, and presence in more than 150 countries.

It aims to provide a platform for both experienced and novice traders to utilize their trading skills and knowledge and make money through the digital financial system. PrimeXBT is a safe and secure trading platform that transacts over millions of dollars every day through buying and selling of cryptocurrencies and other assets such as Forex and other commodities. 

However, PrimeXBT has a list of restricted countries where the use of its services is prohibited. The list of updated regularly by adding or deleting some countries after compliance with the country’s legal laws. One such country is the United States of America, where PrimeXBT is current not legal. 

There are many other trading platforms for US residents, but PrimeXBT is not available for US customers.

Is PrimeXBT Legal In The US?

Why Is PrimeXBT Illegal In The US?

The strict regulations in the United States make it highly impossible for platforms like PrimeXBT to comply with the laws. Here are some of the reasons why:

• Registration with the SEC

The Securities Exchange Commission operates and verifies all international exchanges in the country. One of its clauses doesn’t allow foreign companies to accept US investors if they are not registered with the SEC. 

There have been instances where cryptocurrency exchanges have operated in the country without the Commission’s approval, but those exchanges were sued shortly. Hence, PrimeXBT for US residents seems like a long way still.

• Know Your Customer Requirements(KYC)

Anonymity and privacy of the customers are part of the original ethos of cryptocurrencies. However, America imposed verification of the investors through the KYC process in all national and international exchanges. 

This is done to prevent any money laundering and any activity that may finance crime. Hence, it becomes one of the major challenges for both customers and the exchange to go through the long process of KYC. 

One of the features of PrimeXBT that most users love is there is no mandatory filing of KYC, unlike other exchanges.

• Margin trading in PrimeXBT

PrimeXBT platform allows trading in  Commodities, Forex, Indices along with crypto. Derivatives trading is becoming very popular, but since it involves high risks, retail investors in the US cannot access it. 

The margin trading tool in PrimeXBT allows traders to leverage their position by up to x100 and hence is not compatible with the US SEC laws.

• Rigorous reporting and taxation

Any kind of money business that processes cash transactions over $10,000 has to report to the IRS. The US authorities view crypto exchanges as a way for big companies and investors to evade taxes, with many transactions underreported. 

Therefore, frequent reporting and taxation laws of the countries make it difficult for exchanges to comply with the rules every time. Also, the country has decided to treat cryptos as cash soon; hence it makes it tougher for foreign exchanges such as PrimeXBT to smoothly operate in the country.

How To Use Your PrimeXBT Account When Traveling To The US?

PrimeXBT USA customers are not able to operate PrimeXBT accounts, but if you are from another country but traveling to the US, then you can get access. But, when PrimeXBT detects a login from an IP address in the US, they will ask you for an ID verification. 

As soon as the platform detects a restricted IP address, a warning message will popup telling you that you can use the service as long as you are not a resident of the US. Also, you may need to show your ID proof showing that you are a resident of another country.

Is PrimeXBT Secure?

PrimeXBT has an extensive cybersecurity framework in place to keep your crypto trade safe and transactions secure. The following are some of the security measures the platform follows to keep its users safe:

• The site encrypts all sensitive data, and all passwords are cryptographically hashed.
• The technical team carries out regular checks and tests to ensure the smooth functioning of the platform. 
• A 2-Factor Authentication provided by Google saves your account from any unauthorized access. 
• The platform prohibits any kind of DDoS using Cloudfare
• PrimeXBT undertakes IT security assessments to counterattack new potential vulnerabilities. 
• The platform also undertakes strict safeguards to prohibit account registrations from restricted countries. It sends warning messages and alerts informing the user about its T&C regarding the restricted countries list. 
• PrimeXBT keeps a regular check on every client’s activity and transactions to check for any kind of discrepancies. If it detects any, then it has the right to ask for ID proof, proof of address, or any other documents from its clients.

PrimeXBT US FAQs

Conclusion

PrimeXBT is one of the most popular and safest trading platforms in the world right now. Currently, it does not allow US residents to register an account on the platform due to incompatibility with certain US regulations. However, this restriction is not imposed on PrimeXBT users who may be traveling to the US for a short time, and if you’re from one of the supported countries, feel free to read our full PrimeXBT review to learn if PrimeXBT is something for you.