Can US citizens trade on Bybit or Binance futures?

U.S. citizens face restrictions on Bybit and Binance futures due to regulatory oversight by the CFTC and SEC, pushing many toward compliant platforms like Coinbase or Kraken for legal crypto futures trading.

Jul 18, 2025 at 10:14 pm

Understanding the Legal Status of US Citizens on Global Crypto Exchanges

The question of whether US citizens can trade on Bybit or Binance futures is one that many crypto traders in the United States seek to answer. The legal and regulatory landscape surrounding cryptocurrency trading in the U.S. is complex and ever-evolving. The Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) play pivotal roles in regulating crypto-related activities. As a result, many global cryptocurrency exchanges, including Bybit and Binance, have implemented restrictions for U.S.-based users to comply with local laws.

Both Bybit and Binance have historically restricted access to their platforms for U.S. citizens, especially when it comes to futures trading. Futures contracts are considered leveraged financial instruments, and in the U.S., such trading is heavily regulated. This means that most offshore exchanges cannot legally offer futures trading to U.S. residents without proper licensing and regulatory compliance.

Bybit's Position on U.S. Access to Futures Trading

Bybit has made it clear that U.S. residents are not permitted to access its platform, including futures trading. The platform employs geolocation restrictions and Know Your Customer (KYC) verification processes to ensure compliance with international regulations. If a user attempts to access Bybit from a U.S. IP address or provides U.S.-based identification during registration, the account will typically be blocked or restricted.

In addition to IP blocking, Bybit also uses advanced verification tools to detect and prevent U.S. users from circumventing restrictions using Virtual Private Networks (VPNs). While some traders may attempt to bypass these measures, doing so is against the platform’s terms of service and could lead to account suspension or legal consequences. Bybit’s compliance team actively monitors suspicious activity and reserves the right to freeze or terminate accounts found to be in violation of regional restrictions.

Binance's Stance on U.S. Citizens and Futures Trading

Binance, one of the largest cryptocurrency exchanges globally, has taken a similar approach when it comes to U.S. citizens and futures trading. Binance.com, the main international version of the platform, does not allow U.S. residents to access its futures markets. To comply with U.S. regulations, Binance launched a separate entity called Binance.US, which operates independently and offers a limited range of products that align with U.S. laws.

Binance.US does not currently offer futures trading to its users. This decision stems from the regulatory scrutiny surrounding leveraged crypto products. While Binance.com offers futures contracts with high leverage options, U.S. residents are explicitly prohibited from accessing those features through either the main Binance platform or Binance.US.

How U.S. Traders Can Attempt to Access Offshore Platforms

Despite the restrictions, some U.S. traders attempt to access Bybit or Binance futures using workarounds. The most common methods include using Virtual Private Networks (VPNs), proxy servers, or alternative email addresses not linked to U.S.-based accounts. However, these methods are not guaranteed to work and may violate the platform’s terms of service.

Here are some steps some traders may take:

• Use a reputable, non-U.S.-based VPN service to mask their IP address.
• Create a new account with a non-U.S. phone number and email address.
• Avoid linking any U.S.-issued identification or payment methods during registration.
• Use non-U.S. fiat currencies or stablecoins to fund the account.

It’s important to note that engaging in such practices can lead to account termination or legal risks. Exchanges like Bybit and Binance have sophisticated systems in place to detect unauthorized access. Attempting to bypass these restrictions may result in frozen funds or being permanently banned from the platform.

Legal Alternatives for U.S. Citizens Interested in Crypto Futures

U.S. citizens who wish to trade crypto futures must look for legally compliant platforms. One such option is Coinbase Exchange, which offers regulated crypto futures contracts. Another alternative is Kraken Futures, which is a CFTC-regulated platform allowing U.S. residents to trade Bitcoin futures.

These platforms operate under strict regulatory oversight, which means they offer fewer leverage options and may have higher fees compared to offshore exchanges. However, they provide a legal and secure environment for U.S. traders to engage in futures trading. Traders should also consider derivatives offered by CME Group, which lists Bitcoin and Ethereum futures contracts that are accessible to U.S. investors through approved brokers.

Frequently Asked Questions (FAQs)

Can I use a non-U.S. friend’s account to trade futures on Bybit or Binance?
No, this is not advisable. Sharing or using someone else’s account to trade futures on restricted platforms may violate both the exchange’s terms of service and U.S. law. If detected, both accounts may be suspended or flagged for fraud.

Is it possible for Bybit or Binance to allow U.S. citizens in the future?
It depends on regulatory developments. If U.S. regulators change their stance or if the exchanges obtain the necessary licenses, access may become available. However, as of now, there are no official announcements from either platform regarding U.S. futures access.

Are there any penalties for U.S. citizens caught trading futures on offshore exchanges?
While individual traders are rarely prosecuted, there is always a risk. Regulatory authorities may impose fines or restrict future financial activities. More commonly, users risk losing funds if the exchange freezes or closes their account.

What is the difference between spot trading and futures trading for U.S. citizens?
Spot trading (buying and selling actual crypto assets) is generally allowed for U.S. citizens on most platforms. Futures trading involves contracts that speculate on future prices and are considered derivatives. These are subject to stricter regulation and are often restricted to licensed exchanges.