Since BitcoinMarket, the world’s first crypto exchange emerged in March 2010, many others have followed suit. Presently, there are lots of best UK crypto exchanges and all over the world. If the term crypto exchange is new to you, it is similar to a stock exchange but focuses mainly on the trading of cryptocurrencies digitally.
This guide presents a list of the best crypto exchange in the UK as of October 2024. The selection was based on UK regulatory approval, security features, and more.
Overview Of Cryptocurrency Regulations In The UK
Like in many other parts of the world, cryptocurrency adoption is also gaining traction in the UK. In acknowledgment of the rising influence of cryptos, the UK Government, in April 2022, announced its plan to make the UK a “global hub” for cryptoasset technology.
On the regulatory front, crypto exchanges and crypto-related firms wishing to operate in the UK must register with the Financial Conduct Authority (FCA).
This requirement went into effect on 10 January 2020 and aims to enforce compliance with “the Money Laundering, Terrorist Financing, and Transfer of Funds (Information on the Payer) Regulations 2017.”
Hence, crypto exchanges in the UK and any other crypto-related companies wishing to conduct operations in the UK must implement a Know Your Customer (KYC) process and be subjected to a source of funds and proof of funds checks. All these are to ensure that illicit money does not enter the UK system.
Beginning in October 2023, crypto exchanges in the UK must subject new customers to a 24-hour “cooling-off period” before they become eligible to transact. They must also take and pass a quiz eliciting their acknowledgment of the risks associated with investing in cryptos.
This September, the UK Parliament came up with a new bill called the Property (Digital Assets etc.) Bill. The legislation marks a significant milestone in British history, as it recognizes digital items like cryptocurrencies, NFTs (including digital art), and carbon credits as personal property for the first time.
By becoming one of the earliest legal frameworks to acknowledge these assets, the UK has positioned itself as a leader in the global cryptocurrency landscape.
Previously, there was uncertainty surrounding the legal status of digital possessions in English and Welsh property law, which left owners vulnerable in cases of interference with their assets.
With this new law, owners and businesses will have legal protection against fraudulent activities such as scams. Additionally, it will ensure that judges can cope better with disputes involving digital assets such as those that arise during divorce settlements.
According to UK Justice Minister Heidi Alexander:
Our world-leading legal services form a vital part of our economy, helping to drive forward growth and keep Britain at the heart of the international legal industry. It is essential that the law keeps pace with evolving technologies, and this legislation will mean that the sector can maintain its position as a global leader in digital assets and bring clarity to complex property cases.
5 Best UK Crypto Exchanges
What is the best trading crypto trading platform UK residents should opt for? Well, here are the 5 Best UK crypto exchanges, from which you can choose your best, based on your needs and preferences.
N/B: There are different types of crypto exchanges in the UK, which include centralized exchanges (CEX), decentralized exchanges (DEX), and peer-to-peer (P2P) platforms. However, this article focuses only on centralized exchanges.
eToro
Award-winning eToro is the best crypto trading platform the UK FCA has registered to operate in the region, thus helping it emerge as a leading cryptocurrency exchange in the crypto space.
This registration empowers eToro to provide cryptocurrency services in compliance with the earlier-mentioned 2017 regulation on money laundering, terrorist financing, and transfer of funds regulations.
The eToro platform is designed for both new and experienced traders and features an easy-to-use interface. One of its notable features is the Copy Trader function which enables users to observe and imitate the trades of successful investors.
Additionally, eToro has various educational tools to help users improve their trading skills and strategies. These include the eToro Academy, tools for market analysis, and a virtual trading account.
Crypto users can select from more than 100 approved crypto-assets and join a community that boasts 30 million members. Unlike stocks, which are commission-free, eToro levies a 1% fee for buying and selling crypto, along with a 2% transfer fee for users moving digital assets to their eToro money crypto wallet.
You can consider eToro a reasonably secure platform thanks to solid security features designed to protect against fraud and stealing.
Examples include two-factor authentication and free cold storage, which it describes as “military-grade.” eToro regularly carries out audits conducted by a third-party firm.
New investors will find eToro an appealing exchange in the UK due to its user-friendly interface. The Copy Trader component will especially be helpful for those who are just starting crypto trading.
Investors who prefer a limited selection of cryptocurrencies and value security and regulation will benefit from what eToro has to offer.
Pros
- Registered by the FCA
- Variety of other assets available apart from cryptos, e.g., forex, stocks, and commodities
- Easy-to-use platform suitable for both newbies and otherwise
- Pioneer in copy trading
Cons
- Fewer crypto assets than some other exchanges
- Limited customer support
Kraken
Launched in 2013 in San Francisco, Kraken ranks among the oldest and best cryptocurrency exchanges around. This centralized exchange allows both beginners and experienced crypto traders to easily buy and sell more than 200 digital assets, including BTC, ETH, and SOL.
Minimum withdrawal amounts and fees vary according to the crypto involved.
The exchange also offers trading options like futures and margin trading. However, because of regulations set by the FCA, customers in the UK cannot access the instant buy and spot market feature since futures and margin trading are prohibited there.
Early this year, however, Kraken extended its previously US-only “Kraken Custody” service to customers in the UK and Australia.
Kraken Custody now supports Bitcoin, Ethereum, and USD Coin (USDC) on the ERC20 network. More asset support will be added later this year.
Although it may initially appear challenging for newcomers, Kraken provides a robust knowledge base that helps users quickly become knowledgeable.
It offers resources on various cryptocurrencies, their applications or use cases, and the functional characteristics of coins within the same blockchain. All these enable new users to make informed decisions when trading.
Kraken accounts are equipped with standard security measures, including SMS codes for withdrawal confirmation, email notifications, and two-factor authentication (2FA).
The platform pioneered the regular auditing of assets in 2014 and conducted a well-publicized proof of reserves audit in 2022. Digital assets held on Kraken do not have insurance coverage.
Pros
- Registered by the FCA
- Wide variety of cryptocurrencies available for portfolio diversification
- Active traders enjoy low fees
- User-friendly interface for beginners
- Excellent educational resources and tools
Cons
- Many trading features are not accessible to users in the UK
- No cryptocurrency debit card
Gemini
Gemini is a trust company based in New York that is bound by various security and financial regulations, including the NYSDFS in New York and the FCA in the UK. It offers over 100 different cryptocurrencies on its platform.
Users can choose between two interfaces: “Simple Mode,” which is straightforward and user-friendly for beginners, and ‘ActiveTrader or Advanced Trading Mode,’ which provides advanced features like detailed charting and new order types for more experienced UK traders.
Crypto transactions, including deposits and withdrawals, are processed instantly, though the actual wait times may vary based on network traffic. As of 17th November 2023, Gemini supports only transfers of ERC-20 tokens, BTC, and ETH for UK customers.
Gemini also provides specialized custody accounts primarily aimed at institutional clients, such as hedge funds, which are required by law to keep their digital assets with a licensed custodian.
In these accounts, clients’ digital assets are kept separate in distinct addresses and stored offline using Gemini’s own cold storage system.
Moving cryptocurrencies to Gemini Custody from Gemini Exchange does not cost anything. However, when you transfer cryptocurrencies to Gemini Exchange from Gemini Custody, you’ll have to pay a fee of $125 for each withdrawal. Users are charged a dynamic withdrawal fee when they withdraw cryptocurrencies to an external wallet.
Gemini has a strong reputation for security. Its security measures include two-factor authentication, SOC 2 compliance, and FDIC insurance for fiat currencies.
Notably, in January 2019, Gemini became the first cryptocurrency exchange to successfully complete the SOC 2 Type 1 examination. It also undergoes annual audits for compliance.
Starting from January 8, 2024, Gemini users in the UK will have to sign a “Self Categorisation Investor Statement” indicating whether they are experienced crypto investors or beginners.
Another requirement taking effect on the same date is the completion of a “Crypto Risk Assessment Questionnaire,” where users will indicate that they understand the risks involved in crypto investments. The measures are in compliance with the regulatory requirements mentioned above.
Pros
- Registered by the FCA
- New York Trust company
- Distinct interface for new users and advanced users
- Pioneer in SOC 2 Type 1 examination
Cons
- Comparatively higher fees
- Fewer crypto assets than in some other exchanges
Uphold
Until 2015, Uphold was formerly known as Bitreserve, a company established in 2014 with a narrow focus on ensuring crypto storage. However, since rebranding to Uphold, it has widened its operational scope to include a larger variety of assets, including fiat money and precious metals.
With offices in London, the U.S., and other regions, Uphold now has over 10 million users across more than 184 countries, supporting over 250 fiat and cryptocurrencies, along with commodities.
This large assortment of cryptos for a more diversified portfolio and its wider reach is key to Uphold ranking among the 5 Best UK crypto exchanges in this guide.
In 2020, Uphold introduced support for the pound sterling, enabling users to trade cryptocurrencies using payments from U.K. bank accounts.
The platform provides a diverse selection of cryptocurrencies, easy navigation, and a clear fee structure. It also has a staking program based on the proof of stake mechanism.
For transactions involving Bitcoin and Ethereum, Uphold typically charges spread fees of 1.4% to 1.6% in the UK, US, and Europe. For alternative coins, fees range from 1.9% to 2.95%, while stablecoins incur a fee of 0.25%.
UK and other users can obtain an “Uphold Card,” a crypto-enabled card that facilitates seamless spending in more than 50 million Mastercard-supported stores across the world.
The card has no setup or annual fees, no foreign transaction fees, and low foreign exchange rates. It is available in both virtual and physical formats.
The physical card attracts a £9.95 shipping fee. Those wishing to withdraw money in the UK ATMs will pay a withdrawal fee of £2.50 fee while withdrawing abroad costs £3.50.
The maximum amount a user can transact with the card daily is £10,000. Users can engage in up to 50 transactions every day. Rewards for using the card are based on location but can reach up to £100 per month.
When it comes to security, users are required to enable 2-factor authentication before funding and trading on their Uphold accounts. About 90% of crypto assets at Uphold are stored cold and the company undergoes regular audits to ensure its financial stability. Customer private keys are encrypted for protection against hacking.
A dedicated Security Operations Center works around the clock to identify any suspicious activities. Its proprietary “Reservechain” and “Reserveledger” technologies allow for the verification of its assets, obligations, transactions, and solvency.
Pros
- Registered with the FCA
- No fees for depositing or withdrawing fiat money via bank transfer
- Wide range of crypto assets
- Service accessible in over 184 countries
- Proprietary “Reservechain” and “Reserveledger” technologies
Cons
- Website may be challenging to navigate
- Customer service response can take up to 24 hour
CoinJar
CoinJar is also one of the top crypto exchanges based in Australia. It was launched in 2013 and, hence, among the industry’s earliest exchanges. Its services are globally accessible, but its major focus on quality service in Australia and the UK helps make it one of the 5 best UK exchanges on this list.
The platform offers an easy-to-use interface for those new to cryptocurrency investing, features more than 60 crypto assets, and also functions as a crypto wallet.
Initially focused on long-term holding of cryptocurrencies, CoinJar has now included an advanced trading platform for users interested in short-term trading.
While it caters well to newcomers and long-term holders, its newer trading tools do not match those of more complex exchanges like Kraken. However, CoinJar remains a great choice for anyone wanting a simple way to start investing.
The platform boasts a clear fee structure, a built-in wallet for asset security, and a Mastercard-branded debit card that offers rewards. Users can sell and buy crypto in the UK with fiat currency. After purchase, these assets can be securely stored in CoinJar’s crypto wallet and monitored through live market updates.
CoinJar supports various payment methods for easy transfers of both fiat and cryptocurrencies. It features an “Instant Buy” option, allowing users to purchase digital currencies directly using debit or credit cards, Apple Pay, or Google Pay, though this comes with a 2% transaction fee.
For converting cryptocurrency to fiat and vice versa, as well as for crypto-to-crypto conversions, CoinJar charges a flat fee of 1%. Sending cryptocurrency in the UK to external wallets may attract a dynamic transaction fee, but there are no charges for transactions between CoinJar members.
Security is a top concern for CoinJar, which provides detailed information on its protective measures. It says its internal networks are wholly encrypted, protected by a firewall, and not connected to the internet. It also encourages users to activate two-factor authentication on their accounts.
Additionally, 90% of the funds are kept in offline wallets to protect against breaches. CoinJar also maintains enough reserves to meet over 100% of customer balances.
Pros
- Registered by the FCA
- User-friendly platform
- CoinJar Mastercard with rewards
- No fees for takers and low fees for makers
- Effective customer support
Coins
- Fewer crypto assets
- Limited features for active trading
- Complete suite of features available to only users in Australia and the UK
How To Choose The Best Crypto Exchange In The UK?
There are hundreds of crypto exchanges operating in the UK, but how would you be able to get the best among them? Follow the criteria discussed below to guide you into making the right choice:
Security
This is not negotiable. The safety and security of your digital assets are essential when it comes to choosing a crypto platform in the UK.
You must ensure the exchange you choose has robust security measures in place to protect your assets. The best crypto exchanges in the UK must have security features, such as data encryption, two-factor authentication (2FA), and a cold storage system in place.
Even some crypto exchanges provide insurance on your digital assets, which assures you of safety or a refund in case of a security breach. Crypto exchanges like Coinbase and OKX are well-known for keeping a large portion of their digital assets in cold storage and also have insurance to cover losses.
Remember, cryptocurrency hacks have cost billions globally, so using top crypto exchanges with strong security measures can really help protect your assets.
Regulatory Compliance
The next important thing is regulatory compliance. This shows how a crypto exchange or cryptocurrency trading platform is on par with UK regulations.
In the UK, crypto exchanges must register with the Financial Conduct Authority (FCA) before operation to avoid unnecessary issues.
This ensures they follow all regulatory guidelines, such as anti-money laundering (AML) requirements, know-your-customer (KYC) requirements, crypto screening, and so on, which are in place to keep the crypto industry safe and above board.
Some popular crypto exchanges in the UK market, like Coinbase, Kraken, and eToro are regulated by the FCA, while some are in the process of being registered.
However, it is safer to use crypto exchanges that are registered with the UK FCA. This makes it easier to trust the platform with your digital assets. Otherwise, choosing a crypto exchange that does not comply with UK regulations can be a big risk because you are less protected if anything goes wrong.
Supported Cryptocurrencies
The next thing to consider is the supported cryptocurrencies in the UK exchange.
If you just want to trade the major cryptos like Bitcoin (BTC) or Ether (ETH), most UK exchanges have you covered. However, if you’re interested in trading lesser-known and mainstream altcoins, you would need to considered the best crypto exchange for UK traders that support different types of crypto selection.
For instance, CoinJar focuses more on bigger, more stable cryptocurrencies, which are limited. Kraken supports about 200 different cryptocurrencies, while OKX supports more than 350. So, you need to check whether the exchange you want to choose supports those specific cryptos you want to invest in.
Trading Fees
This is an important consideration for crypto traders in the UK.
Almost all crypto trading platforms charge trading fees for trading crypto on their platform. Some go as far as charging fees for withdrawals.
one of the best crypto in terms of trading fees is OKX. OKX charges low trading fees of about 0.08% per trade, which can go even lower if you use the exchange’s native token or trade more within 30 days.
Kraken charges, at most, 0.4% trading fee for takers and 0.25% for makers.
If you are a frequent trader and want to maximize your profit, look for exchanges that offer low trading fees
Ease Of Use
The best UK cryptocurrency exchange should have an easy-to-use and user-friendly interface for checking user balances, depositing and withdrawing funds, and carrying out other trading tools.
Some exchanges even have mobile app versions for easy use and smooth trading experience. Hence, choose an exchange that prioritizes the provision of an easy-to-use and user-friendly platform.
Tools and Features
Finally, some crypto exchanges offer helpful tools and features for their users depending on their experience level.
As a crypto investor, you might prefer an exchange that has helpful and educational resources for UK investors. For instance, Coinbase has a simple user interface and attractive features like recurring buys, which enables users to invest a set amount regularly.
OKX and Kraken offer more advanced tools and features, such as margin trading, futures trading, and staking for experienced traders.
Kraken also offers crypto staking with returns of about 21%, while OKX features a Launchpad, which enables users to invest in new cryptocurrency projects.
Conclusion
The UK government is favourably disposed to crypto investments in its economy. It has a number of regulations, one of which mandates that crypto exchanges register with the FCA before they can carry out their operations in the UK.
Another rule demands that customers are made to understand the potential risks involved in crypto investments.
Though several crypto exchanges offer services to UK users, this article will help you to discover the best crypto exchange. Compared to other exchanges globally, the five best crypto exchanges UK discussed in this guide stand out for their regulatory compliance efforts, security features, and overall service delivery.
Whoever exchange you choose, be sure to adopt strong protective measures to boost the safety of your crypto assets.
FAQs
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What is the extent of crypto regulation in the UK?
Regulation of crypto exchanges and crypto assets is still evolving in the UK. For now, the industry may be described as largely unregulated. Still, any exchange wishing to operate in the UK must register with the FCA and subject its customers to a KYC process, among other requirements.
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Can you withdraw crypto as fiat currency in the UK?
Yes, cryptocurrency can be withdrawn as fiat currency in the UK through a cryptocurrency exchange that supports fiat withdrawal.
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Are crypto ATMs allowed in the UK?
No. UK law does not permit crypto ATM operations for now. However, there is an underground network of crypto ATMs all over the UK. A few days ago, the FCA commenced its first case against illicit ATM operations in the UK.
