itBit Review | Is itBit Exchange Reliable? A Complete Analysis of Regulatory Licenses, Security, Trading Conditions, and User Reviews

1. Brand Background and Development History

Founded in 2012 and headquartered in New York, itBit is operated by Paxos Trust Company . As one of the first cryptocurrency exchanges in the United States to receive a regulatory license from the New York State Department of Financial Services (NYDFS) , itBit offers significant advantages in regulatory compliance and institutional client services.
In 2015, Paxos obtained a trust company license, making itBit one of the first Bitcoin trading platforms to legally operate in New York. Unlike many retail-oriented exchanges, itBit focuses on institutional investors, financial institutions, and high-net-worth individuals , providing large-volume trading and clearing services.

2. Trading Account and Trading Conditions

itBit supports trading pairs such as US dollar, Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), Litecoin (LTC), and Stellar (XLM) .

Account Conditions at a Glance:

• itBit does not charge account opening fees or account maintenance fees.

• For large transactions, institutional clients can apply for OTC (over-the-counter) services .

• Unlike Binance and Coinbase, itBit has lower retail investor activity and is more like a compliant clearing platform .

III. Supervision and Compliance

• Regulator : New York Department of Financial Services (NYDFS)

• License Name : Paxos Trust Company Charter

• Compliance points :

• 100% customer asset custody, stored in FDIC-insured bank accounts or cold wallets

• Submit audit reports regularly

• Comply with US Anti-Money Laundering (AML) and Know Your Customer (KYC) policies

Unlike most exchanges that are only registered in offshore regions, itBit is fully regulated by the United States, which means stronger legal protection .

IV. Trading Products and Market Coverage

• Support spot trading

• Provide block trading and OTC clearing

• Does not support contracts, leverage, or DeFi derivatives

• The market positioning is closer to a compliant clearing house + bank connection rather than a mainstream retail trading platform

5. Trade Execution and Technical Performance

• Matching engine : institutional-level, low-latency trading

• Liquidity : Relying on Paxos’ partner network, including banks and payment service providers

• API support : REST / FIX interface, suitable for quantitative and institutional docking

• Risk control mechanism : multi-layer risk control, transaction monitoring, and real-time settlement

VI. Deposit and Withdrawal Methods and Compliance Custody

• Deposit : USD wire transfer (ACH/SWIFT)

• Withdrawal : USD wire transfer/cryptocurrency transfer

• Custody : Customer assets are held in custody by Paxos and protected by U.S. trust laws.

• Timeliness : 1–2 business days for US dollar wire transfers, instant transfers for cryptocurrency

VII. Customer Service and Available Languages

• Contact Information :

• Email: [email protected]

• Phone (US): +1-212-500-1150

• Supported languages : English (Chinese not available)

• Customer service : Ticket support/email response, no online chat

8. Media and User Reviews

• Media coverage :

• The Wall Street Journal and Bloomberg have reported on the importance of Paxos as a compliant blockchain company.

• itBit is seen as "a bridge for Wall Street to accept Bitcoin" because of its regulatory advantages.

• User reviews :

• Advantages : strong compliance, high security, suitable for institutional investors

• Disadvantages : Few trading pairs, relatively high fees, low retail user activity

IX. Risk Warning and Summary

• Suitable for : Institutional investors and investors with high compliance requirements

• Not suitable for : Retail investors who want to engage in high-frequency trading, leveraged trading, or DeFi trading

• Risk Warning :

• Market depth is not as good as mainstream exchanges such as Binance and OKX

• Deposits and withdrawals only support US dollars, with many regional restrictions

• Although supervision is strong, it does not mean zero risk. Investors need to operate with caution.

in conclusion :
As a compliant exchange under the supervision of the NYDFS in the United States, itBit offers advantages in security and compliance , making it particularly suitable for institutional clients. However, for ordinary retail investors, its limited liquidity and trading products may not be the best choice.

Multi-dimensional rating (10-point system + comments)

• Regulatory Compliance : 9/10 — NYDFS regulated, safe and compliant

• Trading Conditions : 6/10 — Limited Products, Moderately High Fees

• Security : 9/10 — Strong custodian and bank partnerships

• User Experience : 6/10 — Primarily for institutions, average for retail investors

• Customer Service : 7/10 — Email and phone responsiveness, lack of live support in multiple languages