Best Crypto Exchanges in the UK

Best Cryptocurrency Exchanges in the UK

After reviewing the numerous cryptocurrency platforms in the United Kingdom, we've identified the top five options. We considered key factors such as compliance with the Financial Conduct Authority (FCA) regulations, the range of supported cryptocurrencies, overall user experience, GBP deposit options, and fee schedule. Below is a comparison table of the 5 best exchanges for British traders.

‍

1. eToro

eToro is the top multi-asset trading platform in the United Kingdom, offering access to over 4,500 financial assets. Users can trade leading cryptocurrencies like Bitcoin, Ethereum, and Solana, alongside stocks, commodities, and ETFs, all on one interface. Based in Manchester, it facilitates GBP deposits through several local payment methods like BACs and Faster Payments.

It is registered under the UK Financial Conduct Authority (FCA). With a community of over 30 million users globally, eToro is highly regarded for its trustworthiness and comprehensive financial offerings. One standout feature is eToro's copy trading, which enables users to mimic the trades of successful investors automatically and share strategies with the platform's community. 

• Fees: A variable spread of around 1%. Deposits in GBP are free and there is a £5 withdrawal fee to a local bank account.
• Supported Assets: Over 4,500 cryptocurrencies, stocks, ETFs, and commodities.‍
• Regulation & Licensing: eToro (UK) Ltd is authorised and regulated by the FCA under Firm Reference Number 583263.
• GBP Deposit Methods: Bank transfer, BACS, Faster Payments, debit cards, and more.

‍

2. Uphold

Uphold is the leading British cryptocurrency exchange based in London. It is known for its wide range of supported assets and user-friendly platform. It allows trading of more than 250 cryptocurrencies, 4 precious metals, and 27 national currencies, all from one account. Its platform also supports instant GBP deposits and offers a straightforward interface.

Dedicated to transparency and reliability, Uphold meets the rigorous standards of the UK's Financial Conduct Authority (FCA). It offers audited proof-of-reserves, assuring users that all digital assets are backed on a 1:1 basis. Serving a vast community of over 10 million users across more than 150 countries, Uphold offers an intuitive platform that's perfect for beginners. 

• Fees: A 1% trading fee and a 1% spread fee.
• Supported Assets: Over 250 digital assets, 4 precious metals and 27 fiat currencies.
• Regulation & Licensing: Uphold Europe Limited is registered with the FCA under Firm Reference Number 938277.‍
• GBP Deposit Methods: Bank transfers, credit cards, debit cards, Apple Pay, and Google Pay.

‍

3. KuCoin

‍KuCoin is a good choice for altcoin trading in the UK, offering more than 700 cryptocurrencies, including stablecoins, meme coins, altcoins, dog coins and Metaverse tokens. It is home to over 30 million registered users across 200 countries and has a daily trading volume exceeding $2 billion. The exchange provides advanced trading features, including margin and futures trading with 100x leverage.

It supports a wide range of GBP deposit methods, making it accessible for British traders. The comprehensive offerings include staking, lending and borrowing services, plus a crypto debit card, an NFT marketplace, GemSPACE and trading bots. KuCoin also gives users access to DeFi through its blockchain, KCC Chain, which is backed by the native token, KCS.

• Fees: 0.26% maker fee and 0.56% taker fee for futures. Spot trading also carries a standard fee of 0.1%.
• Supported Assets: Over 700 digital assets.
• Regulation & Licensing: Not regulated by the FCA but available to British investors.‍
• GBP Deposit Methods: Bank transfers, Apple Pay, Google Pay, and card payments.

‍

4. Gate.io

Gate.io is not directly overseen by the FCA, but it's fully open to British investors. The platform has a vast selection of over 2,100 cryptocurrencies, making it a great option for traders looking for diversity in their digital asset portfolios. It impresses with its significant 24-hour trading volume, often surpassing $5 billion, and a global community of more than 14 million users. 

Its stature in the global crypto market is enhanced by innovative features like automated trading bots and a dedicated section for emerging startups, providing unique investment opportunities. The platform supports multiple trading types, including spot, futures and options with leverage options up to 100x supported on hundreds of derivatives contracts.

• Fees: 0.1% for maker orders and 0.2% for taker orders.
• Supported Assets: Over 2,100 digital assets.
• Regulation & Licensing: While not directly regulated by the FCA, it is accessible to UK investors.‍
• GBP Deposit Methods: Bank transfers, debit cards, credit cards, and Faster Payments.

‍

5. OKX

OKX is known for its comprehensive range of trading options, offering more than just spot markets, it supports futures, options, and margin trading with up to 50 x leverage. Its key feature is the OKX Wallet, enabling users to interact with popular layer 1 and layer 2 blockchains. The exchange also has its own network, OKT Chain and native token, OKB Coin.

Although OKX is based in Seychelles and operates under its local regulations, it is fully accessible and has garnered a strong following among UK investors. The platform is particularly suited for institutional traders, thanks to its advanced API capabilities and direct compatibility with popular web3 protocols like AAVE, Uniswap and liquid staking platforms, such as Lido and Jito.

• Fees: 0.1% maker fee and 0.2% taker fee for futures, and a 0.1% fee for spot trading.
• Supported Assets: Over 350 digital assets.
• Regulation & Licensing: Registered by the FCA.‍
• GBP Deposit Methods: Faster Payments, bank transfers, and debit or credit cards.

‍

Is Crypto Regulated in the UK?

Yes, cryptocurrency is regulated in the United Kingdom. The government formed the Cryptoassets Taskforce in 2018, including the HM Treasury, the Financial Conduct Authority (FCA), and the Bank of England. The Financial Services and Markets Bill, enacted in June 2023, categorises crypto assets into security tokens, exchange tokens, utility tokens, and NFTs.

UK crypto regulation integrates with existing financial laws. It operates under two main regimes: anti-money laundering (AML) and determining if an asset is a “specified investment” under the Regulated Activities Order. Promotion of crypto products falls under the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 if deemed “controlled investments” or activities.

The FCA oversees AML measures and regulates security tokens, while the UK Advertising Standards Agency (ASA) monitors cryptoasset marketing. By July 2024, new laws will further detail regulations for crypto staking, exchanges, and custody services. Economic Secretary Bim Afolami highlighted the government's commitment to implementing these measures promptly.

‍

How is Crypto Taxed in the UK?

Cryptocurrency in the UK is taxed similarly to shares. HM Revenue and Customs (HMRC) does not recognise crypto assets as currency, so they are subject to Capital Gains Tax (CGT) or Income Tax, depending on the transaction. For capital gains exceeding the annual tax-free allowance (£6,000 for 2023-2024), a tax rate of 10% or 20% is applied based on the individual's income tax band. 

Income from crypto over the personal allowance is taxed at rates from 20% to 45%. HMRC tracks crypto through data-sharing agreements with UK exchanges and is increasing efforts to identify unreported gains, especially with new frameworks like CARF. Taxpayers should voluntarily disclose unpaid taxes on crypto to avoid penalties. The tax liability period varies from 5 years for reasonable care, 6 years for inadequate disclosure, and up to 20 years for deliberate misreporting.

‍

How to Buy Bitcoin in the UK

If you're new to cryptocurrency investment, here’s an easy guide on how to buy Bitcoin through a digital asset exchange in the UK:

1. Open an Account: Visit a reputable exchange's website to create an account. Click on "Sign Up" and complete the identification process by uploading a photo ID and possibly a selfie or proof of address.
2. Deposit British Pounds (GBP): Go to the deposit section of your account, select GBP as your deposit currency, and enter the amount you wish to transfer. Confirm and complete the transaction using your preferred deposit method.
3. Select Cryptocurrency: Search for Bitcoin (BTC) in the trading section. Choose the GBP/BTC pair to see the current market rate. Review the available trading options, such as market and limit orders.
4. Execute Trade: Click 'buy' or 'trade' to purchase Bitcoin. Enter the amount of Bitcoin you want to buy or the amount of GBP you want to spend. Confirm the order details, including price and fees, and complete the trade.

This guide helps UK users start trading digital assets by outlining the steps from account setup to executing trades.

‍

Bottom Line

The UK has established a strong regulatory environment for cryptocurrency through the FCA. Top exchanges like eToro, Uphold, KuCoin, Gate.io, and OKX offer a range of features and services, making them ideal for investors in the United Kingdom. These platforms provide regulatory compliance and secure, user-friendly experiences, helping British traders confidently navigate the crypto market.