Summary: Luxembourg is leading digital asset adoption in Europe and has established a robust legal framework for regulating cryptocurrency. Overseen by the Commission de Surveillance du Secteur Financier (CSSF), the country enforces stringent compliance measures for all exchanges and wallet services. These regulations require providers to obtain necessary licenses and comply with rigorous anti-money laundering (AML) standards.

For investors new to crypto trading, here is a guide to the 5 best digital currency platforms accepting deposits in Euro:

  1. eToro - Best Crypto Exchange in Luxembourg
  2. Kraken - Top Pick for Institutional Investors
  3. Bybit - Leading Derivatives Trading Platform
  4. Uphold - Recommended for Beginners
  5. Gate.io - Most Diverse Cryptocurrency Selection
Website
Best Crypto Exchange in Luxembourg
5.0 out of 5.0 by Datawallet.

eToro stands out as the best platform for Luxembourg due to its vast selection of financial assets, user-friendly deposit process, competitive fees, and adherence to European regulatory standards.

Website
EUR Deposit Methods

Bank Transfer, SEPA Transfer, Credit Card and more.

Supported Assets

4,500 Cryptos, Stocks, ETFs, Commodities and more.

Licensing and Regulation

The CySEC, FCA, FinCEN and other Tier 1 Regulators.

Best Cryptocurrency Exchanges in Luxembourg

Our expert team has reviewed the 23 cryptocurrency exchanges available in Luxembourg and identified the top options for local investors. This analysis considered multiple factors, including compliance with the Commission de Surveillance du Secteur Financier (CSSF), support for Euro (EUR) deposits, user interface, range of cryptocurrencies, and fee structures. Here is a comparison table of the 5 best platforms for traders in Luxembourg.

Exchange
Cryptocurrencies
Trading Fees
Deposit Methods
Key Features
eToro
4,500+ (Crypto, Stocks & ETFs
0% Fees and Variable Spread (1% Average)
Bank Transfer, SEPA, Debit or Credit Card & More
Multiple Asset Classes & Most Regulated
Kraken
250+
Maker Fees 0.016% & Taker Fees 0.26%
SEPA, Debit Card & Credit Card
Spot Trading, Futures, Staking & More
Bybit
1,100+
0.02% Maker Fee and 0.055% Taker Fee
Bank Transfer, SEPA, Debit Card, Credit Card & More
Staking, Futures, Options, Lending & More
Uphold
250+
1% Fee and 1% Spread
Debit Card, Credit Card and Google Pay
Staking, Gold & Silver Investing & More
Gate.io
2,100+
0.1% Maker Fees and 0.2% Taker Fees
Bank Transfer, Debit Card and Credit Card
Widest Altcoin Variety, Futures, Options & More

1. eToro

eToro is the best crypto investment platform in Luxembourg, offering a wide collection of over 4,500 financial assets. Users can trade top cryptocurrencies such as Bitcoin, Ethereum, and Solana, alongside popular stocks like Apple and Tesla. Additionally, it provides access to Bitcoin ETFs, commodities like gold and silver, and other investment options, making it easy to diversify and manage portfolios within a single platform.

Designed with a focus on user experience, eToro provides an easy deposit process for Euros and a simple sign-up experience with quick verification. Boasting over 30 million registered users worldwide, eToro is accessible in Luxembourg and offers customer support in multiple languages, including English, French, and German, through email and chat. Besides trading, it also provides a demo account for users to practice trading strategies without financial risk.

  • Fees: A variable spread fee model, with rates typically around 1%.
  • Supported Assets: Over 4,500 digital assets, stocks, ETFs and commodities.
  • Regulatory & Licensing: Adheres to CySEC regulations and is available in Luxembourg.
  • EUR Deposit Methods: Bank transfers, SEPA, debit cards, and credit cards.
eToro Luxembourg

2. Kraken

Kraken is an exchange based in San Francisco that is highly regarded among institutional investors in Luxembourg due to its robust security measures and extensive range of services. It boasts a significant market presence with its impressive trading volumes of over $250 billion each quarter. Known for its high liquidity and competitive fees, it supports a wide variety of 250 cryptocurrencies including Bitcoin, Ethereum, and Ripple. 

Its institutional-grade security ensures that assets are protected, with features like cold storage and encrypted communications. Additionally, the exchange offers 24/7 customer support, an OTC desk for large trades, and futures trading for those looking to hedge their investments. Kraken also provides staking services, allowing users to earn up to 25% annual rewards (APY) on their cryptocurrency holdings.

  • Fees: 0.16% for maker orders and 0.26% for taker orders.
  • Supported Assets: Over 250 cryptocurrencies.
  • Regulation & Licensing: Adheres to regulations set by Luxembourg's Commission de Surveillance du Secteur Financier (CSSF).
  • EUR Deposit Methods: Bank transfers, credit cards, debit cards, SEPA and Sofort.
Kraken

3. Bybit

Bybit is the best platform for derivatives trading in Luxembourg, offering a user-friendly interface combined with advanced trading features and multiple order types. There are over 200 perpetual contracts to trade with up to 100x leverage and more than 1,100 digital assets to buy and sell on spot markets. The platform is renowned for its high-leverage options, competitive fees, and deep liquidity.

It serves over 30 million registered users across Luxembourg and 160 different countries. Due to this widespread availability, the exchange can be used in 20 languages, including English, German and French. It provides an easy trading experience with features like dual price mechanisms to avoid market manipulation and an insurance fund to protect traders from negative equity. It also regularly publishes its reserves to show all users funds are held 1:1.

  • Fees: Maker fees are 0.02% and taker fees are 0.055%. Spot trading is 0.1%.
  • Supported Assets: Over 1,100 crypto assets.
  • Regulation & Licensing: Regulated by CySEC and is available in Luxembourg.
  • EUR Deposit Methods: Bank transfer, SEPA, credit card, debit card, Zen, Wise, Easybank, Apple Pay, Google Pay and iDEAL.
Bybit Luxembourg

4. Uphold

Uphold is an excellent choice for beginners in Luxembourg, offering an intuitive platform that supports a wide range of financial assets, including cryptocurrencies, precious metals, and fiat currencies. Users can easily buy, sell, and hold Bitcoin, Ethereum, and 250 other popular cryptocurrencies with transparent pricing and no hidden fees. There are also 27 traditional currencies, plus Gold, Silver, Palladium and Platinum.

The platform simplifies the trading process with a straightforward sign-up and verification process. Uphold’s “Anything-to-Anything” trading feature allows users to trade directly between different asset classes without first converting to fiat. The platform also offers a unique AutoPilot feature for recurring trades, making it easy for beginners to automate their investment strategies. It also offers attractive staking options, allowing users to earn up to 30% APY.

  • Fees: Trading fees of 1% and also applies a spread fee of 1%.
  • Supported Assets: Over 250 digital assets, 4 precious metals, and 27 fiat currencies.
  • Regulation & Licensing: Adheres to European regulations and is available in Luxembourg.
  • EUR Deposit Methods: Bank transfers, Google Pay, Apple Pay, credit, and debit cards.
Uphold

5. Gate.io

Gate.io is recognized for its extensive selection of cryptocurrencies, making it the top choice for investors in Luxembourg looking for diversity. The platform supports over 2,100 assets to trade across spot, futures and options markets with up to 100x leverage. It is known for its comprehensive suite of features, which includes staking, lending and borrowing services, an NFT marketplace, copy trading, a crypto debit card and trading bots.

With an impressive 24-hour trading volume surpassing $8 billion and a global user base of more than 16 million, Gate.io commands a significant presence in Luxembourg and 190 other countries. The platform is equipped with high-level security measures, including two-factor authentication and cold storage. Live customer support in German and French is available around the clock to assist users with any issues.

  • Fees: 0.1% for maker orders and 0.2% for taker orders.
  • Supported Assets: Over 2,100 digital assets.
  • Regulation & Licensing: Not directly licensed in Luxembourg but is accessible.
  • EUR Deposit Methods: Bank transfers, debit cards, credit cards, and more.
Gate.io

Is Crypto Regulated in Luxembourg?

Luxembourg takes a thoughtful approach to regulating cryptocurrencies and virtual assets. The Commission de Surveillance du Secteur Financier (CSSF) stresses the importance of understanding the risks and details associated with these assets. They urge investors to gather complete information before diving in. The regulatory framework is mainly shaped by the Law of 12 November 2004 on anti-money laundering and counter-terrorist financing (AML/CFT Law). This law highlights the need for careful investor diligence due to the volatile nature of digital assets.

The new Regulation (EU) 2023/1114 on Markets in Crypto-Assets (MiCAR), effective from 29 June 2023, is a big step towards formalizing crypto-asset regulation in Luxembourg. However, asset-referenced tokens (ART) and electronic money tokens (EMT) remain unregulated until 30 June 2024, marking a transition period for the financial market. This evolving regulatory landscape showcases Luxembourg's efforts to balance innovation with investor protection in the digital asset space.

How is Crypto Taxed in Luxembourg?

In Luxembourg, the taxation of cryptocurrency transactions varies based on the type of gain and the investor's role, under the oversight of the Luxembourg Inland Revenue Authority. If you sell cryptocurrencies within six months of buying and your profit exceeds €500, it's considered speculative. These gains are taxed at the standard individual income rates, up to 45.78%. If the gains are realized after six months, they remain untaxed. For those acting as traders, gains are taxed at standard income tax rates.

Corporations face a different set of rules. Gains or losses from cryptocurrency sales are subject to corporate tax when the assets are disposed of. Any cryptocurrency transactions, including paying for goods and services, are taxable events. Mining activities, when exceeding personal asset management and meeting specific criteria, are considered commercial and thus taxable. Cryptocurrencies received through mining or airdrops by corporations are taxed based on their market value at the time of receipt.

How to Buy Bitcoin in Luxembourg

If you’re new to cryptocurrency investment, it’s essential to understand the process of purchasing tokens like Bitcoin through a digital asset exchange. Here’s a quick guide to how crypto investment platforms in Luxembourg operate:

  1. Open an Account: Start by creating an account on your chosen exchange. Visit the website and click on "Sign Up." Provide your name, email address, and set a strong password. Complete the identity verification process, which usually involves uploading a photo ID (such as a passport or driver's license) and possibly a selfie or proof of address.
  2. Deposit Euros (EUR): Navigate to the deposit section of your account. Select EUR as your deposit currency and enter the amount you wish to transfer. Be aware of the platform’s fees and limits to understand any associated costs and processing times. Confirm the deposit and follow the instructions to complete the transaction.
  3. Select Cryptocurrency: To buy Bitcoin or other cryptocurrencies, go to the trading section. Enter the cryptocurrency name or symbol in the search box, such as BTC for Bitcoin. Choose the EUR/BTC pair to see the current market rate. Review the trading options available, including market and limit orders.
  4. Execute Trade: Click the 'buy' or 'trade' button to purchase your selected cryptocurrency. Enter the amount of Bitcoin (or another cryptocurrency) you want to buy, or specify the amount of EUR you want to spend. Check the order details, including the price, fees, and total cost. Confirm the trade by clicking the 'buy' or 'confirm' button.

This step-by-step guide provides Luxembourg users with a clear overview of how to start trading digital assets, from setting up an account to executing trades.

Bottom Line

In conclusion, Luxembourg is a leader in cryptocurrency adoption in Europe, offering a solid regulatory framework and a diverse selection of exchanges for investors. Whether you're a beginner or an institutional investor, platforms like eToro, Kraken, Bybit, Uphold, and Gate.io provide robust options tailored to different needs. By choosing the right platform, Luxembourg investors can effectively manage and grow their cryptocurrency portfolios while staying compliant with local regulations.