Best Crypto Exchanges in Luxembourg

Summary: If you want to invest in cryptocurrencies in Luxembourg, you must use a licensed digital asset exchange that adheres to the regulations set by the European Securities and Markets Authority (ESMA). Authorised exchanges enable deposits in Euros via domestic bank transfers, debit cards, credit cards, and other payment options.

To start your digital asset investing journey in Luxembourg, we have assessed the leading trading platforms within the region. These exchanges are recognised as the most dependable and credible choices accessible:

1. eToro - Best Overall Exchange in Luxembourg
2. Bybit - Best Non-KYC Crypto Exchange
3. Bitstamp - Best Luxembourg-based Exchange
4. Binance - Best for Institutional Investors‍
5. ‍Uphold - Best For Transparency and Security

Top Crypto Platforms in Luxembourg

‍Our team has meticulously examined more than 30 digital currency platforms available to residents of Luxembourg to pinpoint the number one option. Utilising the ranking methodology we developed, we have accessed each exchange on key factors such as regulatory compliance, available assets, Euro deposit options, fees, and more. Refer to the below for a detailed overview of the Five Best Cryptocurrency Exchanges in Luxembourg.

‍

1. eToro

eToro is the best overall cryptocurrency exchange in Luxembourg due to its user-friendly platform, wide range of tradeable assets, low fees, free EUR deposits and innovative social trading features. The platform's easy-to-use interface is well-suited for beginners and experienced traders, while its extensive selection of assets ensures that users have access to a diverse range of investment options. eToro's pioneering social trading functionality allows users to follow and copy the trades of successful investors, effectively democratising access to advanced trading strategies. 

• Fees: Deposits & withdrawals are completely free, and crypto trades are subject to a 1% flat fee.
• Supported Assets: 92 cryptocurrencies, 3000+ stocks, 18 indices, 27 commodities, 49 fiat currencies and 300 ETFs.
• Regulation & Licensing: Regulated & Licensed by the ESMA.
• Customer Support Options: 24/7 support via live chat, email & online ticketing system.
• EUR Deposit Methods: Bank Transfer, SEPA, Credit/Debit Card, eToro Money, Skrill, Neteller, Rapid Transfer & Trustly.

‍

2. Bybit

Bybit, ranked as the best Non-KYC cryptocurrency exchange in Luxembourg, offers traders a high level of privacy and anonymity by not requiring identity verification from its customers. In contrast to exchanges that require extensive identity verification, Bybit allows users to trade with minimal personal information. With a focus on perpetual contracts and leveraged trading, Bybit caters to retail and institutional investors looking for advanced trading options. The platform offers multiple trading types, including spot, options, margin and futures, with up to 100x leverage.

• Fees: Deposits and withdrawals are free, and there is a 0.1% fee on spot trading. The maker/taker rebate for futures trading is 0.01%/0.06%.
• Supported Assets: 400+ cryptocurrencies.
• Regulation & Licensing: Not regulated by any government authority (hence no KYC requirements).
• Customer Support Options: 24/7 support via live chat, email, ticketing system & phone.
• EUR Deposit Methods: Wise, Credit Card, Debit Card, Easy Bank, SEPA, ZEN, Bank Transfer, Revolut, Maestro & Google Pay.

‍

3. Bitstamp

Bitstamp is recognised as the best Luxembourg-based cryptocurrency exchange, combines a strong local presence with global reach. The platform's intuitive interface and advanced trading features have garnered a loyal user base of millions worldwide. Bitstamp's commitment to compliance with local and international regulations makes it a reliable and secure choice. This strong alignment with Luxembourg's regulatory framework and financial ecosystem has secured Bitstamp's status as the best locally-based exchange.

• Fees: 4% for deposits and 0.4% for trading crypto.
• Supported Assets: 83 Cryptocurrencies.
• Regulation & Licensing: Regulated and licensed by the Luxembourg Financial Regulator, CSSF.
• Customer Support Options: 
• EUR Deposit Methods: Credit/Debit Card, Bank Transfer, SEPA, Google Pay, Apple Pay & PayPal.

‍

4. Binance

Binance is the world's largest cryptocurrency exchange by trading volume and is considered one of the best options for institutional investors in Luxembourg. Offering a vast array of cryptocurrencies, trading pairs, and advanced order types, Binance caters to the sophisticated demands of large-scale traders. Additionally, the platform's Binance Smart Chain enables the development of decentralised applications, further appealing to institutional clients. Its commitment to robust liquidity has earned it the position of the top exchange for institutional investors.

• Fees: Deposit & withdrawal fees vary depending on your method and are between 0.5% - 1.8%. Spot trading is 0.1% and the derivatives maker/taker rebate is 0.02%/0.04%.
• Supported Assets: 350+ cryptocurrencies.
• Regulation & Licensing: Not regulated in Luxembourg.
• Customer Support Options: 24/7 support via live chat, email & online ticketing system.
• EUR Deposit Methods: SEPA, Easy Bank, Zen & Credit/Debit Card.

‍

5. Uphold

Uphold holds the distinction of being the best cryptocurrency exchange in Luxembourg for transparency when it comes to its holdings. It is one of the few platforms that is being regularly audited to prove that its user's assets are always held 1:1 on the exchange and are never lent out or used. This provides Luxembourg residents peace of mind that their assets are being securely held. The platform's commitment to providing clear, real-time information about its assets, fees, and exchange rates has resonated with users seeking a trustworthy trading experience. 

• Fees: Free deposits on all methods except card, which is subject to a 2.49% fee. Crypto trading fees vary between 0.8% - 1.2%.
• Supported Assets: 210 cryptocurrencies, 40 shares, 4 precious metals and 27 fiat currencies.
• Regulation & Licensing: Regulated and Licensed by the ESMA.
• Customer Support Options: 24/7 support via live chat and email.
• EUR Deposit Methods: Bank Transfer, Credit/Debit Card, SEPA, Google Pay & Apple Pay.

‍

Is Crypto Investing in Luxembourg Legal?

Trading cryptocurrencies is legal and recognised under a well-regulated framework. The country's financial regulator, the Commission de Surveillance du Secteur Financier (CSSF), classifies cryptocurrencies as intangible assets, and as such, digital asset exchanges must adhere to strict regulations to operate legally. In 2015, Luxembourg became a pioneering nation in cryptocurrency legislation by granting a Payment Institution license to Bitstamp. Consequently, Luxembourg has established itself as a prominent European hub for cryptocurrency adoption and innovation.

‍

How is Crypto Taxed in Luxembourg?

‍In Luxembourg, cryptocurrency taxation follows a comprehensive and simple structure. Capital gains from the sale of cryptocurrencies are generally tax-exempt for individual investors, provided that the activity is considered non-professional and the holding period exceeds six months. However, if an individual's crypto trading is deemed professional or speculative, the capital gains may be subject to progressive income tax rates, reaching up to 42%. Additionally, crypto mining and staking rewards are considered taxable income, with rates dependent on the taxpayer's total annual income. 

‍

How to Buy Crypto in Luxembourg

If you're interested in buying cryptocurrencies in Luxembourg, follow this clear, step-by-step guide to ensure a secure and legal transaction:

1. Pick a regulated exchange: Choose platforms adhering to the European Securities and Markets Authority (ESMA) regulations.
2. Set up and authenticate your account: Register with your email, generate a secure password, and finish the KYC procedure by submitting the required identification and proof of residence.
3. Add EUR: Load your account using SEPA, Trustly, Klarna, Skrill, Neteller, bank transfers, or debit/credit cards.
4. Buy cryptocurrency: Decide on the digital currency and quantity in EUR or crypto, then approve the transaction.
5. Protect your holdings: Relocate your digital assets to a private wallet for improved security.

By following these guidelines and selecting a reputable, regulated exchange, you can safely and lawfully obtain cryptocurrencies in Luxembourg and Europe.

‍

Bottom Line

To recap, among the various cryptocurrency exchanges available to residents of Luxembourg, eToro stands out as the best overall choice due to its user-friendly platform, multilingual customer support (English, French and German), extensive selection of crypto assets, low fees, free EUR deposits, and innovative social trading features. By adhering to the strict regulations set by ESMA, eToro provides a secure and trusted trading environment for its customers.