Key Takeaways
- New York is a prominent hub for cryptocurrency activities in the U.S. but has strict regulations like the BitLicense.
- The BitLicense limits the number of crypto platforms available to residents due to high compliance costs.
- Businesses in areas like Brooklyn and Manhattan accept crypto payments for goods, services, and real estate.
- Spending crypto in New York comes with challenges like tax obligations, volatility, and security concerns.
An Overview of Crypto Spending in New York
New York City is seen as one of the prominent hubs for cryptocurrency activities in the United States. Its crypto adoption is shaped by both its status as a financial center and its stringent regulatory environment. It has been identified by Coinwire in their study as the most crypto-ready city in the United States.
Source: CoinWire
However, New York City is a notoriously difficult place in which to trade cryptocurrencies, as only exchanges that have been awarded a coveted BitLicense from the New York State Department of Financial Services are allowed to offer “virtual currency” services to New York-based customers.
The BitLicense introduced in 2015 was one of the first regulatory frameworks for cryptocurrency in the U.S. It mandates that companies operating in the state obtain a license to engage in cryptocurrency activities such as exchanges, trading, and wallet services.
While this regulation aims to protect consumers and prevent fraud, it has been criticized for being overly restrictive. Many smaller businesses and startups have opted to avoid New York entirely, citing high compliance costs and the complexity of the licensing process.
While this regulation aims to protect consumers and prevent fraud, it has been criticized for being overly restrictive.
Nevertheless, some businesses in tech-forward areas like Brooklyn and Manhattan have started accepting crypto payments for goods and services. These include cafes, retail stores, and even certain real estate transactions. Crypto can also be used indirectly through platforms that offer gift cards for major retailers, expanding its utility for everyday spending.
For individuals, crypto spending is becoming more accessible through innovations like crypto debit cards, Bitcoin ATMs and mobile wallets.
The city has dozens of Bitcoin ATMs scattered throughout the five boroughs. Although only a small handful of them allow you to also sell BTC. The city also has a Bitcoin Cash ATM located in the Bronx, an Ether ATM located in downtown Manhattan, and one ATM in the Bronx that will let you buy and sell Bitcoin, Ether, Litecoin, Dash and Zcash.
The Best Places to Spend Crypto in New York City
Source: Freepik
New York is home to a growing number of businesses that accept cryptocurrency as payment. The city offers diverse options for spending digital currencies. Whether you’re looking to dine, shop, or explore unique services, New York’s vibrant crypto-friendly scene has something for everyone. Here are some of the best places to spend crypto in New York City.
| S/N | Best Places To Spend Crypto In New York | Category |
| 1. | La Sirène | Food and Beverages |
| 2. | Magnum Real Estate Group | Real Estate |
| 3. | Equinox Fitness Club | Sports and Fitness |
| 4. | Saphira & Ventura | Arts |
| 5. | The Montessori Schools | Education |
| 6, | PubKey | Food and Beverages |
| 7. | Somewhere Nowhere | Entertainment |
| 8. | Home Depot | Shopping |
| 9. | Algocap Real Estate | Real Estate |
| 10. | Lion’s Milk Cafe | Food and Beverages |
| 11. | AMC Theaters | Entertainment |
| 12. | Gucci | Shopping |
| 13.. | The King’s College | Education |
Food and Beverages
La Sirène
La Sirène is a New York restaurant specializing in modern French cuisine. It operates in two locations: Broome Street and Amsterdam Avenue.
The restaurant accepts Bitcoin, Ethereum, Dash, and EOS, among other cryptocurrencies. It has also been featured in the New York Post for its early adoption of Bitcoin payments.
PubKey
PubKey is a Bitcoin-themed bar in Greenwich Village, New York City. Since opening in 2022, it has become a hub for the Bitcoin community, regularly hosting related events. The bar features Bitcoin-inspired decor, including a dedicated “shrine” to the cryptocurrency.
Recently, Donald Trump visited PubKey and bought a burger with a Bitcoin transaction.
Source: PubKey
This marks the first known instance of a U.S. president engaging in cryptocurrency use.
Lion’s Milk Cafe
Lion’s Milk Cafe in Brooklyn is an NFT-themed coffee shop that accepts cryptocurrency payments. The cafe’s decor highlights NFT art, and it frequently hosts crypto-focused events and activities.
The cafe accepts payments in most major cryptocurrencies. However, customers are discouraged from using Ethereum due to its high gas fees. Both in-person and online cryptocurrency payments are supported.
Shopping
Home Depot
Home Depot, the largest hardware retailer in the United States, accepts crypto for purchases.
Payments are processed through Flexa’s checkout systems, which are installed in their stores. Gemini’s partnership with Flexa made this process possible and has removed common barriers
Gucci
Gucci introduced cryptocurrency payments in May 2022 at its Wooster Street store in New York.
Payments are made through a link sent to the customer via email, containing a QR code for completing the transaction through their crypto wallet.
Gucci supports over 10 cryptocurrencies, including Bitcoin, Bitcoin Cash, Ethereum, Wrapped Bitcoin, Litecoin, Shiba Inu, and five US dollar-pegged stablecoins. Dogecoin, a meme-based cryptocurrency, is also accepted.
Entertainment and Nightlife
Somewhere Nowhere
Somewhere Nowhere, a nightclub in New York City now accepts Bitcoin and Ethereum as payment options.
Payments are facilitated through the crypto exchange Coinbase, allowing customers to use cryptocurrencies for transactions at the club.
In its press release, the nightclub stated that Bitcoin and Ethereum payments would be processed similarly to credit card payments.
AMC Theaters
AMC, the largest movie theatre chain in the U.S., also accepts cryptocurrency for online ticket and concession purchases. The CEO, Adam Aron, announced this in a tweet in November 2021.
Source: X/Adam Aron
Customers can pay using Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Dogecoin, and Shiba Inu.
Sports and Fitness
Equinox Fitness Club
Equinox Fitness Club is the first gym in New York City to accept digital currencies for memberships.
The luxury fitness club started accepting crypto payments in 2022 for its annual paid-in-full All Access and Destination Memberships.
“Equinox’s vision is to inspire a connected community with personalized service and unparalleled experiences.”
The gym partnered with BitPay, a cryptocurrency payment provider established in 2011. The accepted cryptocurrencies include Bitcoin, Bitcoin Cash, Ethereum, Dogecoin, Litecoin, Wrapped Bitcoin, Shiba Inu, and five USD-pegged stablecoins: BUSD, DAI, GUSD, USDP, and USDC.
Real Estate
Magnum Real Estate Group
Magnum Real Estate is among the first property firms in New York to accept Bitcoin as payment. The firm used it for a $29 million transaction on a three-store retail condo on Manhattan’s East Side.
The company has partnered with BitPay to process cryptocurrency payments. BitPay converts Bitcoin into USD and deposits the amount into Magnum’s account, reflecting the firm’s confidence in digital currencies.
Algocap Real Estate
Algocap Real Estate is a New York-based brokerage that accepts cryptocurrencies such as Bitcoin, Dogecoin, and Ethereum for property transactions.
The firm highlighted this move as a response to the growing popularity of digital currencies and the wealth generated by the crypto sector.
“Algocap has the expertise necessary to structure complex transactions, including real estate tokenization deals, and can work with both U.S. and non-U.S. clients to facilitate novel digital real estate opportunities,”
Arts
Saphira & Ventura
Saphira & Ventura is a contemporary art gallery in New York that accepts Bitcoin and Ethereum for art purchases.
The gallery, known for supporting emerging artists and promoting cultural diversity, aims to simplify transactions for international clients by removing currency barriers.
Education and Learning
The King’s College
The King’s College, an accredited school in New York City, began accepting Bitcoin in June 2014. They are the first U.S. college to do so.
The college allows Bitcoin to be used for tuition, donations, and other expenses through a partnership with Coin.co
The Montessori Schools in Flatiron and Soho
The Montessori Schools in Flatiron and Soho, private preschools in Manhattan, started accepting Bitcoin in June 2017.
The decision came after several parents approached co-founder Marco Ciocca about using cryptocurrency for tuition payments.
Payments are processed through Coinbase, which automatically converts the cryptocurrency to U.S. dollars.
Tips for Spending Crypto in New York
Source: Freepik
Here are some practical tips to make your crypto transactions in New York seamless and efficient.
Be Tax Compliant
Every crypto transaction, whether buying coffee or making a large purchase, can trigger tax obligations in New York. The IRS treats spending crypto as a taxable event because it’s considered a sale of property. This means you must calculate the capital gains or losses for each transaction based on the crypto’s value at the time you acquired it versus when you spent it. Failure to report this accurately could result in penalties.
Keep meticulous records, including transaction dates, amounts, and the purpose of the expense. Use tax software that supports crypto or consult with a professional familiar with New York and federal tax laws.
Avoid Unlicensed Platforms
New York requires companies that handle cryptocurrency transactions to hold a BitLicense. Using unlicensed platforms can expose you to scams or legal risks. Platforms without proper authorization may lack safeguards, leaving your funds vulnerable.
Before spending or converting crypto, research the platform to confirm its licensing status and reputation. Stick to exchanges and wallets with a history of security and compliance. Always read reviews and avoid platforms that promise exaggerated returns or lack transparency about fees and policies.
Use a Crypto Debit Card
Crypto debit cards make it easier to spend cryptocurrency at traditional merchants by converting it to fiat currency at the point of sale. These cards work like regular debit cards but are linked to your crypto wallet.
When choosing a card, compare options based on fees, supported cryptocurrencies, and usability. Some cards offer additional benefits, like cashback in crypto or integration with apps for transaction tracking. Understand the conversion rates and potential costs involved, as frequent usage could lead to higher fees. Always check for compatibility with merchants in your area.
Plan for Volatility
Cryptocurrency prices fluctuate rapidly, which can complicate spending. For instance, the value of your Bitcoin could decrease between the time you decide to spend it and the moment the transaction is processed.
To manage this, convert only the amount you need for a purchase to fiat currency or stablecoins. Stablecoins pegged to traditional currencies like USD, help mitigate price swings.
Avoid holding large amounts of crypto in a wallet intended for daily expenses, as it exposes you to unnecessary risk. Keep an eye on market trends, especially when planning significant purchases.
Stay Secure
Security is critical when spending cryptocurrency. Use wallets with strong encryption and enable two-factor authentication (2FA) for added protection. For everyday transactions, choose reputable mobile wallets with user-friendly interfaces, but avoid storing large amounts in these wallets. Use cold wallets, such as hardware wallets, for long-term storage.
When making a transaction, avoid using public Wi-Fi, which could expose your wallet to hackers. Verify the recipient’s address carefully before sending payments, as blockchain transactions are irreversible. Regularly update your wallet software and be cautious of phishing scams disguised as legitimate platforms.
Challenges of Spending Crypto in New York
Source: Freepik
Strict Regulations
New York is one of the most heavily regulated states for cryptocurrency. The BitLicense requirement means that only licensed exchanges and services can operate legally. Some platforms only operate in the state partially due to the regulatory burden. This can create frustration for users seeking more diverse options or better fees.
Additionally, compliance requirements make certain transactions more complicated, with users needing to verify that the merchant and payment processor meet state standards. These regulations also make it challenging for small businesses to accept crypto without navigating complex legal frameworks.
Tax Implications
Spending cryptocurrency in New York triggers tax obligations because the IRS considers it a form of property. Each transaction requires you to calculate the capital gains or losses based on the price of the cryptocurrency at purchase versus the time of spending. Failing to comply with tax regulations can result in penalties.
This can quickly become overwhelming for users making frequent small transactions. The burden of tracking and reporting these events increases the complexity of using crypto for everyday purchases.
Volatility
The unpredictable nature of cryptocurrency prices makes spending it risky. A token’s value could drop significantly between the time it’s added to a wallet and when it’s spent, leading to unintended losses.
Conversely, if the value increases, spending crypto instead of holding it could mean missing out on potential gains. This volatility discourages users from making significant purchases, as the real cost can fluctuate widely in a short time.
For businesses accepting crypto, the need to quickly convert payments to fiat adds another layer of complexity to manage financial stability.
Security Concerns
Spending cryptocurrency involves security risks, particularly for users new to the technology. Transactions are irreversible, so any mistakes—such as sending to the wrong wallet address—result in permanent loss.
Using insecure wallets or platforms can expose users to hacking or phishing attempts, where attackers steal funds or private keys. Public Wi-Fi networks and outdated wallet software also increase vulnerability.
Lack of Technical Expertise
Cryptocurrency can be intimidating for individuals unfamiliar with blockchain technology or digital wallets. Setting up wallets, understanding private keys, and choosing the right platforms for spending requires a steep learning curve. Users often make mistakes, like mismanaging funds or choosing unreliable platforms, due to a lack of knowledge.
Even finding merchants that accept crypto or understanding how to integrate crypto debit cards can be confusing. Without proper guidance or resources, many individuals avoid using crypto entirely, which slows its adoption as a viable payment method in New York.
Conclusion
The rise of crypto-friendly places in New York highlights the growing integration of crypto into the city’s vibrant culture. The city has a thriving ecosystem for crypto-friendly businesses. This includes restaurants, retail stores, and even real estate firms.
However, the strict regulatory environment, led by the BitLicense, creates significant hurdles for both users and businesses. Many smaller companies have opted to avoid the market due to high compliance costs, limiting options for crypto enthusiasts.
Individuals may have to face challenges like tax implications, price volatility, and security risks to spend crypto.
Nevertheless, for those willing to navigate these complexities, New York offers a glimpse of what a crypto-integrated world could look like.
FAQs
- What types of businesses accept crypto in New York?
Crypto is accepted by cafes, retail stores, gyms, real estate firms, art galleries, and even educational institutions.
- What tools make crypto spending easier?
Crypto debit cards, Bitcoin ATMs, and mobile wallets improve accessibility for individuals.
- Are Bitcoin ATMs available in New York?
Yes, Bitcoin ATMs are available across all five boroughs, with some supporting other cryptocurrencies like Ether, Litecoin, and Dash.
- How can I ensure security when spending crypto?
Use wallets with strong encryption, enable two-factor authentication, and avoid public Wi-Fi during transactions.
- What are the main challenges of spending crypto in New York?
Strict regulations, tax implications, price volatility, and security concerns are the key obstacles.
