Guide to Cryptocurrency Exchanges in Washington State
Navigating the world of digital assets requires understanding the specific regulations and available platforms within your jurisdiction. For residents of the Evergreen State, finding reliable Cryptocurrency Exchanges In Washington State is crucial, especially since some major players like Kraken and Kucoin are not operational here due to state regulations. This guide provides an overview of the exchanges that do serve Washington residents, alongside insights into the state’s regulatory landscape, potential risks, and related activities like Bitcoin mining. We aim to equip you with the necessary information to confidently engage with cryptocurrency trading platforms available in Washington.
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Available Cryptocurrency Exchanges in Washington
While some exchanges have exited the Washington market due to specific licensing requirements, several reputable platforms continue to offer services to state residents. Here are some options:
eToro
eToro provides access to Bitcoin and other cryptocurrencies for users across the United States, including Washington. Known for its user-friendly interface, it offers a free wallet and mobile app, making purchases straightforward.
Limited-time offer: Get $10 free once you trade $100 worth of cryptocurrency.
Cryptocurrency is offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. BuyBitcoinWorldwide.com is not an affiliate and may be compensated if you access certain products or services offered by the MSB.
Pros:
- Trusted platform with over 25 million users globally.
- Simple interface, ideal for beginners.
- Supports a wide variety of cryptocurrencies.
- Includes a free wallet and mobile app.
Cons:
- Does not allow direct deposit of existing cryptocurrency holdings.
Ease of Use: Easy
Privacy: Low
Speed: Average
Fees: Low
Reputation: Trusted
Limits: High
Robinhood
Robinhood is a well-known US-based financial services company, regulated by FinCEN, offering cryptocurrency trading alongside traditional stocks and ETFs. Washington residents can use ACH transfers, bank accounts, and debit cards to buy Bitcoin and other digital assets. The platform is noted for its commission-free trading model, which extends to both cryptocurrencies and spot Bitcoin ETFs.
Robinhood logo – a cryptocurrency exchange available in Washington State
Pros:
- Offers commission-free trading for cryptocurrencies.
- Provides access to spot Bitcoin ETFs (e.g., IBIT, FBTC).
- Regulated by US authorities (FinCEN, SEC).
- Features a user-friendly mobile app for iOS and Android.
Cons:
- Services are limited to the United States.
- Requires identity verification, limiting privacy.
Ease of Use: Easy
Privacy: Low
Speed: Fast
Fees: Low
Reputation: Trusted
Limits: High
Gemini
Based in New York, Gemini is a regulated cryptocurrency exchange available to residents in Washington State, the wider US, UK, Canada, and several Asian countries. Funding options include wire transfer, SEPA, and ACH transfer. Gemini emphasizes security and compliance.
Get $20 of free BTC after trading $100 or more within 30 days.
Pros:
- Highly regulated and considered trustworthy.
- Instant deposit feature allows for quick buying (withdrawal requires settlement).
- Offers competitive fees, particularly in the US and Canada.
Cons:
- The platform interface can be challenging for newcomers.
Ease of Use: Hard
Privacy: Low
Speed: Slow
Fees: Low
Reputation: Trusted
Limits: High
Coinbase
Coinbase stands as one of the largest and most recognized Cryptocurrency Exchanges In Washington State and globally, boasting over 100 million users. It provides an accessible platform for US residents via its website and highly-rated mobile app. Coinbase also includes a free digital wallet for users.
Coinbase logo – a popular cryptocurrency exchange operating in Washington State
Eligible US residents (excluding Hawaii) who successfully create an account and purchase crypto will receive $5 in Bitcoin (BTC) added to their Coinbase portfolio.
Visit Coinbase’s Website
Pros:
- Large, established US-based exchange with a massive user base.
- User-friendly interface and mobile app (iOS & Android).
- Offers a complimentary digital wallet.
Cons:
- Fees can be relatively high compared to some competitors, especially for simple transactions.
- May monitor user transaction activity.
Ease of Use: Easy
Privacy: Low
Speed: Average
Fees: Average
Reputation: Trusted
Limits: High
River
River focuses exclusively on Bitcoin, offering a streamlined purchasing experience with low fees and an automated recurring buy feature. It serves most US states, including Washington (exceptions are New York and Nevada).
Pros:
- Clean, intuitive user interface.
- Automated recurring purchase option simplifies dollar-cost averaging.
- Low transaction fees.
Cons:
- Strictly Bitcoin-only; no support for altcoins.
Ease of Use: Easy
Privacy: Low
Speed: Average
Fees: Low
Reputation: Trusted
Limits: High
Unchained
Unchained specializes in secure Bitcoin purchasing, often involving human assistance. They also provide services like Bitcoin-backed IRAs and inheritance planning, catering to long-term holders focused on security.
Unchained logo – a platform offering Bitcoin buying services
Pros:
- Offers tax-advantaged Bitcoin savings options (IRAs).
- Focuses on secure storage solutions (multi-sig vaults).
- Provides personalized support.
Cons:
- Does not offer a simple, standalone wallet.
- Fees can be higher than basic exchanges.
Ease of Use: Easy
Privacy: Low
Speed: Fast
Fees: High
Reputation: Trusted
Limits: High
Uphold
Established in 2015, Uphold allows US residents, including those in Washington, to buy Bitcoin and other cryptocurrencies using various methods like wire transfer, credit/debit cards, and ACH transfer. It also uniquely supports trading precious metals.
Pros:
- Supports trading of cryptocurrencies, precious metals (gold, silver), and fiat currencies.
- Multiple funding options available.
Cons:
- Requires ID verification, reducing user privacy.
Ease of Use: Easy
Privacy: Low
Speed: Average
Fees: Low
Reputation: Trusted
Limits: High
Coinbase Advanced
Formerly known as Coinbase Pro, Coinbase Advanced Trader is the exchange platform offered by Coinbase, targeting more experienced traders. It provides lower fees and more advanced trading features compared to the standard Coinbase platform and is available to Washington residents. Funding is possible via bank transfer, SEPA, or bank wire.
Coinbase Advanced logo – trading platform for experienced users
Visit Coinbase Advanced’s Website
Pros:
- Offers significantly lower trading fees, potentially reaching 0%.
- Provides advanced trading tools and order types.
- Benefits from Coinbase’s established security and liquidity.
Cons:
- The user interface is more complex and less intuitive for beginners.
Ease of Use: Hard
Privacy: Low
Speed: Average
Fees: Low
Reputation: Trusted
Limits: High
MoonPay
MoonPay serves as a crypto payment gateway, facilitating the purchase and sale of cryptocurrencies across more than 150 countries. It supports over 80 digital assets, including Bitcoin and Ethereum, via credit/debit cards, bank transfers, and other local payment methods. While user-friendly, its transaction fees are generally higher. Many wallets and exchanges integrate MoonPay for fiat on-ramping.
Pros:
- Very easy to use, especially for first-time buyers.
- Supports a wide range of cryptocurrencies (80+).
- Accepts numerous payment methods.
- Broad global availability (150+ countries).
- Integrated into many popular crypto applications.
Cons:
- Transaction fees can be high (1-4.5%).
- Does not offer crypto-to-crypto swapping.
- Lacks advanced trading features.
- No dedicated mobile app.
Ease of Use: Easy
Privacy: Low
Speed: Fast
Fees: Low
Reputation: Trusted
Limits: High
Bitcoin ATMs
For those preferring cash transactions, Bitcoin ATMs offer a quick way to purchase Bitcoin. They provide a degree of privacy but usually come with higher transaction fees, typically ranging from 5-10%. You can locate nearby machines using online maps.
Pros:
- Allows buying Bitcoin with physical cash.
- Transactions are generally fast.
- Can offer more privacy than online exchanges requiring KYC.
Cons:
- Fees are significantly higher (often 5-10%).
- Availability may be limited depending on location.
Washington State’s Approach to Crypto Regulation
Washington State, known for its tech hubs like Seattle (home to giants like Microsoft and Amazon), has taken a proactive stance on regulating Bitcoin and cryptocurrency activities. The Washington State Department of Financial Institutions (DFI) aims to protect consumers and businesses without unduly hindering technological innovation in payment systems. However, the resulting regulations have created compliance challenges for some crypto businesses.
Map highlighting Washington state relevant to cryptocurrency exchange regulations
A key piece of legislation, State Bill 5031 (passed in 2017), classified cryptocurrency exchanges in Washington State as money transmitter businesses. This designation requires them to register with the DFI, post a substantial surety bond (up to $250,000), undergo third-party data system audits, and maintain non-tradeable reserves equivalent to customer cryptocurrency deposits.
These stringent requirements led several major exchanges, including Bitfinex, Kraken, Poloniex, and ShapeShift, to cease operations in Washington. ShapeShift publicly criticized the burdensome costs and data collection mandates, relocating its newly acquired Seattle-based hardware wallet division, KeepKey, out of the state.
Recognizing the potentially “blockchain-unfriendly” perception created by SB 5031, state regulators have made efforts to adapt. Senate Bill 5638 (introduced in 2019) sought to establish legal definitions for “blockchain” and “distributed ledger technology” and grant legal equivalence to electronic records and signatures stored on such ledgers. While a step towards integration, this bill didn’t alter the core money transmitter requirements that caused the earlier exodus.
More recently, Senate Bill 5544 (signed in March 2022) established the Washington State Blockchain Work Group. This group is tasked with exploring how the state can leverage and support blockchain technologies to foster business development.
Despite the regulatory hurdles, residents can still utilize the licensed and operational exchanges listed earlier. Peer-to-peer (P2P) platforms like LocalBitcoins also offer an alternative, facilitating direct trades between individuals using mutually agreed-upon payment methods (e.g., PayPal, bank transfers, gift cards).
Regardless of the purchase method, secure storage is paramount. Using a reliable cryptocurrency wallet is essential to protect your assets, as the decentralized nature of Bitcoin means lost funds are typically irrecoverable.
Risks: Hacks and Crypto Scams in Washington
The cryptocurrency space, while innovative, is not immune to fraud and security breaches. Washington State has seen its share of incidents highlighting the risks involved.
In March 2021, investors sued Malachi Salcido, alleging misappropriation of $2.4 million from StepChange, his Bitcoin mining company they had invested $8.5 million into. Claims included excessive management fees charged by Salcido ($57,000/month) and potential overbilling for rent at data centers owned by another of Salcido’s companies. The situation escalated when Salcido Enterprises sued StepChange for back rent, and Salcido, despite controlling StepChange, allegedly failed to respond, resulting in a default judgment against the company investors had funded. This case underscores the importance of due diligence when investing in crypto-related ventures.
Scams often prey on inexperienced investors lured by promises of quick riches. The Initial Coin Offering (ICO) boom of late 2017 was rife with such schemes. One notable example involved former Washington state Senator David Schmidt (Republican, 2003-06). Schmidt, previously found guilty of misusing campaign funds, founded Meta 1, a cryptocurrency purportedly backed by billions in gold or fine art. He and associates falsely claimed KPMG audits and guaranteed returns, stating each token (sold for $22.22 or $44.44) could reach $50,000.
Screenshot of the Meta 1 cryptocurrency scam website homepage
The SEC intervened, freezing Meta 1’s assets and charging the operators with fraud after they collected over $4.38 million from investors through what the SEC deemed a vehicle for theft.
Operation Software Slashers
Cryptocurrency has also surfaced in connection with traditional crime. In 2015, Bitcoin and Litecoin were forfeited by Rex Yang Jr., a Seattle businessman involved in one of the largest software piracy rings prosecuted by the US Department of Justice. Yang pleaded guilty to participating in a conspiracy (2009-2014) that illegally sold Microsoft and Adobe product key codes sourced from China. His operation used fraudulent websites, including an eBay store disguised as a charity (“Project Contact Africa”) that generated $12 million in revenue while misleading donors. Investigators seized over $20 million in assets, including luxury cars, precious metals, and 105 BTC (worth ~$25,000 then, significantly more now).
These examples highlight the need for caution. Always verify claims, understand the risks, and use reputable platforms when engaging with cryptocurrencies. The easiest and generally safest way to acquire crypto is through established cryptocurrency exchanges in Washington State like those listed above.
Bitcoin Mining Landscape in Washington
Central Washington, particularly areas along the Columbia River within Chelan, Douglas, and Grant counties, has become attractive for Bitcoin mining operations due to the abundance of cheap hydroelectric power. Public Utility Districts (PUDs) in these counties generate surplus electricity from their dams, offering competitive rates that appeal to energy-intensive industries like data centers (operated by Google, Yahoo, Dell) and cryptocurrency miners. Grant County alone hosts numerous commercial mining operations.
However, the relationship hasn’t always been smooth. Miners have legally challenged PUD rate increases specifically targeting “emerging and highly speculative markets,” deeming them discriminatory.
In a sign of continued interest, Merkle Standard received a permit in June 2022 to repurpose the closed Ponderay Newsprint Mill in Usk, Washington, into a large-scale crypto mining facility capable of housing 30,000 servers. Allrise Capital, Merkle’s holding company, acquired the former mill site, which was previously a major local employer.
While the economic incentives for mining in Central Washington are strong, the industry is still evolving, and prospective miners should carefully calculate potential profitability, considering both electricity costs and hardware expenses, as smaller operations can find it challenging to compete.
Frequently Asked Questions (FAQ)
Which major exchanges support Washington residents?
| Exchange Name | Support for Washington |
|---|---|
| Binance.us | Yes |
| Coinbase | Yes |
| Coinmama | Yes |
| Kraken | No |
| Kucoin | No |
| Gemini | Yes |
| Uphold | Yes |
| Luno | No |
| Crypto.com | Yes |
Where can I find a Bitcoin ATM in Washington State?
The most effective way is to use a dedicated online tool like a Bitcoin ATM map or finder. These tools allow filtering by cryptocurrency type and transaction capability (buy, sell, or both) to locate ATMs near you. Our Bitcoin ATM finder tool can assist with this.
What are the main options for buying Bitcoin in Washington State?
You can use regulated cryptocurrency exchanges in Washington State that are licensed to operate there, such as Coinbase, Gemini, eToro, Robinhood, and others listed previously. Alternatives include peer-to-peer (P2P) marketplaces (like LocalBitcoins, though user caution is advised) and Bitcoin ATMs for cash purchases (which usually involve higher fees).
Is Bitcoin mining viable in Washington State?
Central Washington offers competitive electricity rates due to abundant hydropower, making it geographically favorable for mining. However, profitability depends heavily on electricity costs, hardware efficiency, and Bitcoin’s market price. Potential miners should conduct thorough economic analysis before investing, as regulations and rate structures can also impact viability.
How can I cash out Bitcoin to a bank account in Washington State?
You cannot directly withdraw Bitcoin (BTC) itself to a traditional bank account. Instead, you must sell your BTC for US dollars (USD) on an exchange platform that facilitates crypto-to-fiat conversions. Exchanges like Coinbase, Gemini, and Coinmama allow Washington residents to sell Bitcoin and withdraw the resulting USD funds to their linked bank accounts via methods like SWIFT, wire transfer, or ACH transfer. P2P platforms may also offer bank transfers as a payment method between users, but carry different risks.
