Q1: How are my U.S. stock trades cleared on BIT? Is the underlying compliance architecture reliable?
A1: BIT’s U.S. stock business operates under the internationally recognized Omnibus Introducing Broker (Omnibus IB) structure within the secure framework of the U.S. clearing system. Our transparent and publicly verifiable clearing pathway and architecture work as follows:
BIT utilizes an Omnibus IB structure. Under this approach, BIT does not directly interface with the National Securities Clearing Corporation (NSCC); instead, orders are seamlessly routed to U.S. onshore licensed clearing brokers who execute NSCC clearing and Depository Trust Company (DTC) depository custody. Client assets are held through an omnibus account structure at the clearing broker level, allowing the clearing firm to monitor net positions while BIT manages frontend KYC, compliance, and ledger reporting. This is a commonly used and technically mature model in cross-border securities services globally.
The operating entity of BIT U.S. Stocks (formerly Matrixport) is Matrix Gelephu Pte. Ltd., holding a Financial Services License in the Gelephu Mindfulness City (GMC) Special Economic Zone in Bhutan.
Adhering to principles of transparency, BIT routes orders to licensed U.S. clearing brokers for final settlement. Our three clearing and custody partners can be publicly verified via FINRA BrokerCheck:
Clear Street: SEC-regulated, CRD 288933 (Verify Here)
RQD CLEARING, LLC: SEC-regulated, CRD 134284 (Verify Here)
ATOMIC VAULTS SECURITIES, LLC (AVS): SEC-regulated, CRD 317194 (Verify Here)
Q2: Why should I trust a Bhutanese financial license? What protection does the Gelephu Mindfulness City (GMC) framework offer for my assets?
A2: The Bhutanese license issued under the Gelephu Mindfulness City (GMC) financial regime is a core part of Bhutan’s national strategy to build a globally respected financial hub, similar in concept to leading international financial centres such as Singapore and Abu Dhabi Global Market (ADGM).
The Relationship Between GMC Leadership and BIT’s U.S. Stocks:
BIT’s U.S. Stocks offering is supported by an entity that holds a financial services licence under the Gelephu Financial Services Office (GFSO) regulatory framework. GFSO is the independent regulator overseeing all financial services in GMC. For a start, the development of GMC's regulatory framework draws closely on Abu Dhabi Global Market (ADGM) laws, allowing GMC to immediately adopt global best practices rooted in English Common Law. Moving forward, GFSO is progressively developing its own local laws that will apply to all regulated financial services and digital asset activities in GMC.
For BIT clients, this translates into concrete, institutional-grade protections based on global standards:
Strict Asset Segregation: Client assets must be held completely separate from the company’s own balance sheet, with strict limitations on the use of client money and securities.
Regulated Institutional Custody: Custody must be provided through independent, institutional-grade, and regulated custodians.
Financial Soundness Buffers: The platform is mandatorily required to maintain capital and liquidity buffers to ensure financial stability even in stressed market conditions.
Continuous Audit & Oversight: Ongoing independent audits, detailed reporting, and compliance reviews are mandatory, ensuring strict enforcement and accountability.
In short, a Bhutanese GMC license represents participation in a highly regulated, internationally aligned financial centre built with legal clarity for the next generation of digital finance.
Q3: Did BIT base its U.S. stock services in a Bhutanese entity to help users evade CRS tax reporting?
A3: No. The use of a Bhutanese licensed entity is absolutely not designed to circumvent CRS (Common Reporting Standard) or any other tax reporting regime.
BIT selected Bhutan because the Royal Government of Bhutan and the GFSO have established a clear, purpose-built regulatory framework uniquely tailored for digital assets and fintech innovation. Bhutan’s policy objective is to attract real fintech businesses, technology talent, and legitimate capital formation — not to operate as a secrecy jurisdiction or tax haven. Our Bhutan entity is regulated and supervised, perfectly aligning with the high compliance standards under which BIT operates in Singapore, Hong Kong, and other jurisdictions.
Tax Compliance Notice:
CRS status does not alter a user's underlying tax obligations. Regardless of where a financial platform is licensed, investors remain legally required to declare and pay taxes based on their own home tax residency. BIT does not offer anonymity, concealment, or any mechanisms to bypass tax laws, and we do not provide tax-evasion or tax-avoidance services. Users remain fully responsible for complying with the tax laws of their home jurisdictions.
Q4: How do you prevent the platform from becoming a money laundering tool or converting illicit funds into "clean" U.S. stock assets?
A4: BIT operates a full-lifecycle AML and financial-crime control framework that is strictly aligned with Bhutan’s regulatory requirements under GFSO and international best practices set by the Financial Action Task Force (FATF). Robust, triple-layer controls are in place to help mitigate the risk that crypto assets could be misused to launder funds into traditional financial markets:
On-chain Source Screening at Deposit: All crypto deposits are screened in real time using leading blockchain-analytics tools. Funds linked to scams, hacks, dark-net markets, sanctioned entities, or other high-risk sources are flagged, subject to enhanced review, restricted, rejected, or reported where required.
Real-name Identity and Asset Matching: Every customer must complete strict KYC and customer due-diligence checks. Wallets, accounts, and trades are bound to verified legal identities, ensuring that digital assets are always traceable to a real person or entity, in line with FATF’s customer-identification standards.
Same-name, Closed-loop Withdrawals: Fiat withdrawals are only permitted to bank accounts held in the same verified name as the trading account. This effectively prevents third-party layering, mule accounts, and off-platform diversion of funds.
Together, these controls create a closed, auditable loop from on-chain crypto → verified user → regulated brokerage → same-name bank account, significantly reducing the risk of illicit funds entering or exiting the system while meeting global compliance expectations.