Summary: The vibrant landscape of Bitcoin and other cryptocurrencies in the United Kingdom is effectively accessed through exchanges adhering to the UK's regulatory standards. These dependable platforms provide convenient options for depositing British Pounds (GBP) with diverse methods, such as bank transfers and credit or debit card payments, facilitating access to financial advancements.

Our detailed review highlights the top 5 exchanges in the UK. We focus on their dedication to stringent security protocols, compliance with the FCA financial regulations, a wide array of cryptocurrencies, distinctive features and services, and their pricing structures.

  1. eToro - Best Overall Exchange in the UK
  2. Bybit - Best for Trading Derivatives
  3. Kraken - Best for Institutional Investors
  4. Uphold - Best Beginner-Friendly Platform
  5. Binance - Best Global Crypto Exchange

Table of Contents

Best Crypto Exchanges in the UK

Our expert team has developed a comprehensive methodology to evaluate the best cryptocurrency exchanges in the United Kingdom. In our assessment, we consider crucial factors such as compliance with Financial Conduct Authority (FCA) regulations, proven security measures, levels of transparency including audit outcomes, fee structures, platform features, and the range of supported digital assets. Following our evaluation, we have determined the best 5 crypto exchanges in the UK.

1. eToro

eToro is the best cryptocurrency exchange for British investors, owing to its comprehensive range of services and products. Its user-friendly interface simplifies the process of buying, selling, and trading a variety of cryptocurrencies, plus over 3000 other financial instruments like stocks, ETFs, and commodities. eToro distinguishes itself with unique features like copy trading, where users can follow and replicate the strategies of successful traders, providing an interactive and educational experience. Additionally, the platform offers insightful market analysis tools and real-time data, making it a reliable choice for informed trading decisions. 

  • Minimum Deposit: 20 GBP for first-time deposit.
  • Supported Assets: 3,000+ Cryptocurrency, Stocks and ETFs.
  • Regulation: Registered with the Financial Conduct Authority (FCA).
  • Fees: Costs include 1% for buying or selling a cryptocurrency, conversion fees for GBP to USD, as all trades are made in US Dollars, and a $5 withdrawal fee to bank accounts. There are no monthly or maintenance charges on the exchange.
eToro - Best Overall Exchange in the UK.
eToro - Best Overall Exchange in the UK.

2. Bybit

Bybit is highly regarded for its specialisation in cryptocurrency derivatives trading for over 980 digital currencies. It appeals particularly to traders looking for advanced trading options like futures and perpetual contracts with up to 25x leverage. The platform is engineered for performance, offering high-speed trade execution and minimal downtime. The exchange also prioritises security and user support, providing a safe and responsive environment for trading. Its competitive fee structure and deep liquidity in various cryptocurrency markets make Bybit an optimal choice for derivative traders, earning it the second spot among UK  exchanges.

  • ‍Minimum Deposit: 10 GBP for first-time deposit.
  • Supported Assets: 980+ Cryptocurrency.
  • Regulation: Registered with the FCA in the UK.
  • Fees: Costs include a 0.1% fee for spot trading, 0.01% fee for maker orders, and 0.06% for taker orders on futures markets. Deposits and withdrawals in GBP are completely free of charge.
Bybit - Best for Trading Derivatives.
Bybit - Best for Trading Derivatives.

3. Kraken

Kraken is recognised as the leading choice for British institutional investors. The platform's robust security measures and deep liquidity pools are tailored to meet the needs of high-volume traders and institutional clients. It offers a comprehensive suite of products, including spot and futures trading, over-the-counter (OTC) services, and margin trading options. The exchange is known for its regulatory compliance and transparent fee structure, providing institutional clients with a trustworthy and efficient trading environment. Kraken's advanced order types and detailed reporting tools further contribute to its appeal, securing its rank as the third-best exchange in the UK.

  • Minimum Deposit: 50 GBP for first-time deposit.
  • Supported Assets: 200+ Cryptocurrency.
  • Regulation: Regulated in the United Kingdom.
  • Fees: Costs include a 0.26% fee for spot trading, and the maker/taker rebate is 0.02%/0.05%.
Kraken - Best for Institutional Investors.
Kraken - Best for Institutional Investors.

4. Uphold

Uphold is acclaimed for its beginner-friendly approach, making it the best platform for new cryptocurrency enthusiasts. Its straightforward and intuitive interface simplifies the process of purchasing, holding, and selling a wide range of over 250 cryptocurrencies. Uphold sets itself apart with features like automatic trading and the ability to trade between multiple asset classes, including cryptocurrencies, precious metals, and equities, all within one platform. This versatility, combined with strong customer support and regulatory compliance with the FCA, makes Uphold an ideal starting point for newcomers to the digital asset world. 

  • ‍Minimum Deposit: 100 GBP for first-time deposit.
  • Supported Assets: 260+ Cryptocurrency.
  • Regulation: Regulated by the FCA.
  • Fees: Costs include a 1.6% fee for spot trading, and the deposit fees vary depending on the method.
Uphold - Best Beginner-Friendly Platform.
Uphold - Best Beginner-Friendly Platform.

5. Binance

Binance claims the fifth spot as the best global crypto exchange in the UK, renowned for its extensive selection of over 350 cryptocurrencies and trading pairs. The platform offers a comprehensive suite of services, including spot trading, derivatives, decentralised finance (DeFi) options, and a dedicated NFT marketplace. Binance is favored for its low trading fees and advanced trading tools. The exchange's global reach and high trading volumes ensure deep liquidity, making it an attractive option for users seeking diverse trading opportunities. Binance's innovative features, like its own blockchain network - Binance Smart Chain, and strong international presence make it a top choice.

  • Minimum Deposit: 20 GBP for first-time deposit.
  • Supported Assets: 350+ Cryptocurrency.
  • Regulation: Not registered with the FCA.
  • Fees: Costs include a 0.1% fee for spot markets, 0.02% for maker orders, and 0.06% fee for taker orders on futures markets. Deposit and withdrawal fees vary depending on the method.
Binance - Best Global Crypto Exchange.
Binance - Best Global Crypto Exchange.

Is Cryptocurrency Regulated in the UK?

The United Kingdom's approach to cryptocurrency regulation merges progressive strategies with thorough oversight, which is pivotal for its financial ecosystem. The primary regulation of the UK's digital asset market falls under the Financial Conduct Authority (FCA), with a focus on advancing the industry while safeguarding British investors.

These regulatory bodies apply specific rules to cryptocurrency operations in the UK. This encompasses robust Anti-Money Laundering and Counter-Terrorist Financing (AML/CTF) initiatives in line with international financial standards. The UK’s commitment to forging a safe, transparent, and effectively regulated environment includes enforcing these measures to monitor and control crypto transactions within its jurisdiction.

How to Buy Bitcoin in the United Kingdom

In the United Kingdom, platforms like eToro are popular choices for those interested in the cryptocurrency market. This platform facilitates easy deposits in British Pounds, offering transaction methods well-suited to the UK's financial infrastructure, including local bank transfers, faster payments, debit card payments, and e-wallets. eToro grants access to a broad range of digital assets, such as Bitcoin, while maintaining competitive fee structures.

Here's a brief guide for purchasing Bitcoin in the UK using eToro:

  1. Account Registration: Begin by registering an account on eToro. Complete the required identity verification steps, adhering to the UK's regulatory norms.
  2. Deposit Pounds: Go to the ‘Deposit Funds’ section, choose ‘GBP’ as your deposit currency, and proceed with the deposit.
  3. Locate Bitcoin: Utilise the search function to locate Bitcoin and select ‘Trade’.
  4. Acquire BTC: Enter the amount you wish to invest and click 'Buy' to complete your Bitcoin purchase efficiently.
Buy Bitcoin in the United Kingdom via eToro.
Buy Bitcoin in the United Kingdom via eToro.

British Tax Requirements

In the United Kingdom, HM Revenue & Customs (HMRC) sets forth the taxation policies for cryptocurrencies, providing clear guidelines for both individual and corporate taxpayers. British residents possessing digital currencies are obligated to report these assets for tax purposes, potentially impacting their income tax responsibilities. The country treats income from personal investments in cryptocurrencies as subject to income tax.

For businesses and self-employed individuals, digital currencies are regarded as business assets. Consequently, any profits or capital gains from cryptocurrency transactions are classified as taxable income. Revenue generated from activities like mining, staking, or lending digital tokens is considered business income and is taxed in accordance with the UK's prevailing income tax rates.

Final Thoughts

To summarize, the UK's cryptocurrency landscape offers a variety of exchanges, each catering to different needs and preferences. Our in-depth examination led to identifying the top 5 exchanges, which are eToro, Bybit, Kraken, Uphold, and Binance. For those looking to venture into the world of cryptocurrencies, these platforms present reliable and secure gateways. Understanding the country’s regulatory environment and tax requirements is crucial for informed participation in the crypto market.