How to buy crypto in New York: A 2026 guide

New York has one of the most highly regulated cryptocurrency markets in the United States. This regulation is overseen by the New York State Department of Financial Services (NYDFS), and requires exchanges to hold more licenses and go through more verification and validation procedures than most other states. Through this BitLicense system, New York’s crypto framework affects how residents buy and manage digital assets, from platform availability to user verification. But it’s still possible to buy crypto from the Big Apple.

In this article, you’ll learn how to buy crypto in New York, which options are available to residents, and what to expect as you move from purchase to long-term management.

What makes buying crypto in New York different?

New York applies a separate regulatory framework to cryptocurrency that goes further than most. Many states treat crypto exchanges primarily as technology platforms, but New York regulates them as financial service providers. This difference mandates what digital asset services can operate in the state and how New Yorkers are allowed to buy and store these assets.

Cryptocurrency regulation in New York revolves around the BitLicense framework administered by the NYDFS. It was introduced in 2015 to address risks that surfaced during early crypto market growth, including weak custody practices, cybersecurity failures, and limited consumer recourse when platforms collapse or freeze withdrawals. Instead of reacting after losses happened, New York regulators chose to require oversight ahead of time.

Under the BitLicense, exchanges for cryptocurrencies must meet ongoing compliance standards. These include:

• Capital requirements
• Anti-money laundering (AML) controls
• Transaction monitoring
• Cybersecurity programs
• Clear rules for safeguarding customer assets

Approval isn’t automatic, and licensed platforms are subject to supervision, reporting obligations, and enforcement action if they don’t meet New York’s standards.

For most traders, these requirements create a noticeably different experience compared to other states:

• There are fewer cryptocurrency exchanges – both centralized and decentralized – legally available.
• Identity verification processes like know-your-customer (KYC) are more detailed and take longer to complete.
• Custody rules are stricter, with firmer separation between customer assets and company funds.

What exchanges can New York residents legally use?

For New York residents, choosing a crypto exchange usually starts with a short list of approved platforms rather than open browsing. Here’s what New Yorkers can expect when it comes to their crypto exchange options.

Fully licensed/NYDFS-approved platforms

Coinbase and Gemini are the most common entry points for New Yorkers. They support major assets, allow direct transfers, and are built to handle New York’s compliance requirements without impacting their core functionality.

Another approved option is Bitstamp, though it's geared toward more experienced users. PayPal and Venmo also allow crypto buys, but access is limited to buying, selling, and holding crypto inside their apps.

Broker-style or alternative options

For users who prefer investment apps that treat crypto like traditional assets, broker-style options like eToro and Robinhood Crypto are available in New York. While these platforms support fewer coins and have more restrictions on withdrawals, they’re still a practical option for users who prioritize ease of use and interface familiarity over full control.

Restricted or unavailable to New York users

Many widely known global exchanges don’t operate in New York. Binance, Gate.io, and Kraken are a few examples that fall into this group. These platforms may appear available at first glance, but New York residency typically leads to blocked signups or account restrictions once verification begins.

What ID or verification is required in New York?

Opening a crypto account in New York usually involves more identity checks than users in other states. It’s not a formality – it can determine whether features like fiat withdrawals or higher transaction limits are available.

Most platforms require the following information during onboarding or shortly after an account is created:

• A government-issued photo ID
• Date of birth
• Social Security number
• Proof of U.S. citizenship or lawful residency
• Address verification (through utility bill or bank statement)

Since BitLicense treats crypto platforms like regulated financial institutions, they’re expected to monitor transactions and prevent misuse tied to fraud, sanctions, or money laundering. 

For New York users, this means identity verification often takes longer. On Coinbase, for example, many users complete identity review within a few minutes. But 48-hour delays – and up to a few business days – are common for New Yorkers, especially during busy periods or if additional checks are necessary.

2025

Crypto Tax
Guide is here

CoinTracker's definitive guide to Bitcoin & crypto taxes provides everything you need to know to file your 2024 crypto taxes accurately.

Get startedLearn more

Token availability for New York traders

Like exchanges, New York’s crypto market has a much smaller roster of pre-approved tokens than other states because listing a token for trade or custody requires approval under the state’s regulatory framework. The NYDFS rules that regulated crypto businesses can only list tokens that are included on the state’s Greenlist, or that meet stringent review criteria.

At the time of writing, Greenlist only contains Bitcoin (BTC), Ethereum (ETH), and six stablecoins approved by the NYDFS. Dozens of previously permitted assets were removed in 2023. 

Because New York’s crypto regulation is highly restrictive, many widely traded assets (such as Polkadot (DOT), Cardano (ADA), and numerous DeFi tokens) are often unavailable on platforms that serve New York users. This is largely because these assets haven’t been approved for listing under NYDFS rules – either through the Greenlist or a platform’s NYDFS-approved listing process – or because regulated platforms choose not to list them due to compliance, legal, or risk considerations.

As a result, New York cryptocurrency traders typically see a smaller selection of altcoins available for investment. This approach reduces legal ambiguity for exchanges, but restricts New Yorkers’ access to niche and emerging assets.

Is buying crypto in New York safe?

New York applies more oversight to crypto platforms than any other U.S. state. The limited number of crypto businesses authorized to operate statewide – compared to hundreds of exchanges and brokers accessible in less-regulated markets – gives a sense of how selective New York’s system is.

Platforms serving New York residents are supervised by the NYDFS and have to meet specific requirements around cybersecurity, custody, and internal controls. This includes regular examinations and the ability for the NYDFS to take enforcement action.

One practical protection the NYDFS requires involves fiat funds. On regulated platforms, USD balances are held in segregated accounts at FDIC-insured banks. Crypto assets themselves aren’t insured, but cash deposits are structurally separated from the platform’s operating funds.

None of this prevents market losses or volatile price swings. These regulations aren’t meant to temper the crypto market, either. What it does change is the baseline risk profile for digital assets as New York users transact with platforms that operate under more precisely defined rules and ongoing supervision.

Common mistakes New Yorkers make

The regulatory environment in New York might change how crypto platforms operate, but it doesn’t prevent user mistakes. Here are the most common ones:

• Misunderstanding custody and access rules: Some users assume regulated platforms function uniformly like banks. But withdrawal limits, custody terms, and asset control still vary by platform.
• Relying on regulation instead of basic security: Skipping two-factor authentication or reusing passwords can still lead to account takeovers or losing access to digital assets, even on the best crypto exchanges.
• Overlooking taxable activity: Crypto trades, conversions, and rewards can trigger taxable events. Many users track deposits but ignore internal transactions because IRS rules aren’t always clear.
• Using funds without understanding platform restrictions: Certain features and transfers are limited in New York, which can unexpectedly trap funds if they’re sent somewhere a New Yorker can’t access.
• Falling for “New York workarounds”: Promises of access to restricted exchanges are a common source of scams.

What fees should New York buyers expect?

Exchanges operating in New York must meet stricter compliance, reporting, and operational requirements. This often translates into higher maintenance costs, which, in turn, result in higher fees for users. When looking for the best crypto exchange, New York buyers should compare fee schedules rather than relying on advertised rates alone.

Most fees New York buyers encounter fall into three categories.

Trading fees

Cryptocurrency trading platforms typically charge fees when a trader buys or sells assets. On New York-compliant platforms, trading fees range between roughly 0.1% and 0.5% per transaction, depending on volume and order type. This is often higher than fees offered by some global exchanges that don’t operate in the state.

Spread fees

The spread is the difference between the buy and sell price shown on the trading platform. Wider spreads are common on platforms with limited competition, and they can materially increase the cost of a trade even when stated trading fees appear low. Some platforms, like Coinbase Advanced, have no-fee options for spreads.

Withdrawal fees

These fees apply when transferring crypto to an external wallet or moving fiat to a traditional bank account. Crypto withdrawal fees fluctuate based on network conditions.

Tax considerations for New York crypto buyers

Crypto taxes for New York residents follow federal IRS rules, with state and city taxes on top where applicable. Whether or not a user will have to pay taxes on their crypto transaction depends if they’ve held or disposed of their crypto.

Simply purchasing and holding crypto doesn’t create a tax obligation. Taxes generally come into play when crypto is sold or traded. Selling crypto for cash, or exchanging one cryptocurrency for another, is typically treated as a disposal under IRS rules and may result in a capital gain or loss.

At the state level, New York doesn’t apply separate long-term capital gains rates. This means all crypto gains are taxed as ordinary income at progressive state rates ranging from 4% to 10.9%.

Some transfers may also be taxable, depending on what’s being transferred and how. Transfer to another wallet you own, for example, is tax-free, while transfer to a friend’s is a taxable event. And crypto received for airdrops, staking, rewards, or other incentives is often treated as ordinary income.

Accurate records make it easier to understand potential tax exposure and support reporting if required later. New York cryptocurrency buyers – and traders from the rest of the U.S. – should track cost basis, purchase dates, and disposal events for each transaction. 

Track your New York crypto activity with CoinTracker

The crypto market in New York has tighter controls than many other markets. BitLicense guardrails shape how you buy, hold, and move digital assets, and they also affect what information you need to keep over time. CoinTracker can monitor your crypto portfolio in real time so you’ll have all the information you need on hand for tax season.

Want a clear view of your assets at all times? With CoinTracker, link your wallets and exchanges to monitor your portfolio's performance in real time. Create a free account and see why crypto investors trust us.

Disclaimer: This post is informational only and is not intended as tax advice. For tax advice, please consult a tax professional.