Is Gate.io a Safe & Legit Exchange?

What is Gate.io?

Gate.io is a centralized cryptocurrency exchange that began as Bter.com in China in 2013. After regulatory issues in China forced its closure, the exchange relaunched as Gate.io in 2017, relocating its headquarters to the Cayman Islands.

The platform provides trading access to over 3,800 cryptocurrencies, including spot, margin, and futures markets. It supports advanced tools like trading bots, staking, NFTs, crypto-backed loans, and copy trading. 

The exchange is trusted by more than 22 million users worldwide, processing daily trading volumes above $19 billion, though Gate.io is restricted in certain jurisdictions like the U.S. and Canada.

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Is Gate.io a Safe Exchange?

Gate.io is generally viewed as a safe exchange, backed by multiple robust security measures. It employs cold wallet storage, multi-signature approvals, MPC encryption, and provides insurance coverage for user funds. 

The exchange regularly completes penetration testing and maintains a verified bug bounty program, as confirmed by independent security auditor CER.live, which gives Gate.io an AA rating (88/100) for overall security. This puts it on par or ahead of peers in the space like Bybit, OKX and MEXC.

However, Gate.io has previously suffered a major security breach with a $234 million hack in 2018. Since then, the exchange has significantly strengthened security practices, earned ISO 27001 certification, and adopted regular proof-of-reserve audits to ensure transparency and asset protection.

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What Licenses Does Gate.io Have?

Gate.io operates under licenses and registrations across several jurisdictions. However, the platform lacks oversight from leading regulators like FCA (UK), ESMA (EU), or FinCEN (US), indicating a lighter regulatory framework compared to exchanges such as Kraken or Coinbase. 

Key regulatory authorizations include:

• Italy: Virtual Asset Service Provider (OAM)
• Malta: Class 4 VFA Service Provider (MFSA)
• Dubai: Authorized Proprietary Crypto Trading (DMCC)
• Hong Kong: Trust or Company Service Provider License (TCSP)
• Bahamas: Digital Asset Exchange License (SCB)
• Gibraltar: Distributed Ledger Technology Provider (GFSC)
• Lithuania: Virtual Currency Exchange and Wallet Operator
• Australia: Digital Currency Exchange Provider (AUSTRAC)

As a note - Gate.io’s claimed registration with AUSTRAC (Australia) could not be independently verified by our team.

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Gate.io Customer Support

Gate.io provides 24/7 customer support via live chat, email, and a comprehensive Help Center with guides and FAQs. The exchange doesn't offer phone support, so users should avoid third-party sites claiming otherwise.

Independent reviews of Gate.io vary significantly. On Trustpilot, it holds a moderate rating of 2.0 out of 5 stars, reflecting balanced and authentic user experiences. In contrast, Gate.io has an unusually high rating of 4.4 out of 5 stars on G2. 

Our team found many of these G2 reviews suspiciously originated from single-review accounts offering overly positive feedback, suggesting possible manipulation. Trustpilot’s reviews are therefore likely a more accurate gauge of true user sentiment.

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Gate.io Hacks and Security Breaches Explained

As mentioned earlier in this article, Gate.io’s security record includes two significant hacks that raise concerns over its transparency and internal security practices.

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2018 Hack: $234M Stolen and Alleged Cover-up

Gate.io allegedly concealed a major breach involving approximately $234 million in stolen crypto (including 10,778 BTC and 218,790 ETH) linked to North Korean hackers. On-chain analysts ZachXBT and Austin (@1A1zP1) provided evidence indicating Gate.io had reused wallet clusters compromised during an earlier 2015 hack under its original brand, Bter.com. 

Despite criticism and clear blockchain evidence, Gate.io’s management dismissed allegations and emphasized its internal security mechanisms without addressing the specifics of the incident.

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2019 Ethereum Classic Attack: $270K Lost in 51% Attack

Gate.io suffered a 51% blockchain attack targeting Ethereum Classic (ETC). Attackers deposited ETC, exchanged it for other cryptocurrencies, withdrew these assets, then reorganized the ETC blockchain to erase their original transactions, effectively double-spending. 

Curiously, attackers later returned roughly $100,000 worth of stolen ETC without explanation.

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What Are the Risks of Using Gate.io?

Despite Gate.io’s global reach and solid security, investors should carefully weigh potential risks like regulatory gaps, liquidity concerns, support limitations, and sudden account freezes for VPN users in restricted regions.

Here are some of the key risks in using Gate.io that we have found in researching for this guide:

• Regulatory Exposure: Limited oversight from leading regulators (like FCA or FinCEN) reduces investor protection.
• Liquidity Challenges: Trading lesser-known cryptocurrencies may lead to heightened volatility or execution delays.
• Support Limitations: Lack of direct phone support can significantly delay critical issue resolution.
• Transparency Concerns: A history of opaque responses to security incidents might reflect deeper accountability shortcomings.
• Geographic Access Risk: Accounts risk immediate freezes or asset lockouts if detected accessing the platform via VPN from prohibited jurisdictions, notably the U.S.

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Final Thoughts: Is Gate.io a Legit Exchange?

Gate.io is a legitimate crypto exchange backed by active regulatory licenses (Italy, Malta, Dubai), 22 million users, and daily trading volumes over $19 billion. Independent auditor CER.live rates its security AA (88/100), and it holds ISO 27001 certification. 

However, historical security breaches, notably the $234 million hack in 2018, raise transparency concerns. 

Investors should weigh Gate.io’s current security standards and licensing against these past issues when evaluating the exchange.