Buying cryptocurrencies from the UK has become somewhat of a headache for many of us. High street banks are blocking transfers to crypto exchanges left right and centre, they just don’t want us dabbling in crypto with unregulated companies, period.
I was having an enjoyable love affair with Kraken until banks and regulators started kicking up a storm over fraud and money laundering concerns. Shortly after the whole Binance debacle, my bank began to block my deposits so I had to put my crypto journey on hold.
As per my previous post, UK banks will not involve themselves if you are doing business with FCA regulated companies, unless, of course, they start seeing a high volume of transactions from and to crypto exchanges, which is something you shouldn’t be doing anyway.
Now, before I continue, I must bore you with some important information that you must be made aware of. Read it or skip it, it’s entirely up to you.
Unlike other investments, cryptocurrency is not covered by the Financial Services Compensation Scheme which is able to compensate consumers for up to £85,000. If you buy these types of crypto assets, you are unlikely to have access to the Financial Ombudsman Service (FOS) or the Financial Services Compensation Scheme (FSCS) if something goes wrong. If you invest in crypto assets, you should be prepared to lose all your money.
Please also be aware that the companies listed on this page are registered under the Financial Conduct Authority’s Temporary Registration Regime for crypto-asset firms. The purchase, sale, and custody of crypto assets are regulated by the FCA for anti-money laundering purposes but this does not indicate any approval by the FCA of crypto asset activities.
Before choosing to part with your money I would strongly suggest that you perform your own due diligence on all crypto trading platforms listed. They may well be regulated by the FCA but remember, you are not protected in any way and if anything should go wrong you are alone. Background check the platform, check their fees, read their terms (something that no one bothers with) and check their reputation. You have Trustpilot to help you with that.
Where is the best place to buy Cryptocurrency UK?
Crypto companies registered with the FCA under the Temporary Registration Regime for crypto-asset firms:
Paypal is one of the world’s biggest online payment providers. The company decided to expand into crypto by allowing its customers to use the platform to buy, hold and sell cryptocurrency, with investments starting at as little as £1.
PayPal is initially working with Bitcoin, Ethereum, Litecoin and Bitcoin Cash. With Paypal, you cannot transfer your crypto to or from any other digital wallet.
Another well known and established payment provider that has also expanded into the crypto territory is Skrill. If you are a Skrill customer you can buy, sell and hold cryptocurrency for as little as £10.
Skrill is currently working with over 30 cryptocurrencies that include Bitcoin, Bitcoin Cash, Cardano, Chainlink, Compound, Ethereum and Dogecoin.
Revolut launched in 2015 as a pre-paid card focused on offering free currency exchange to customers. It has become one of the UK’s most valuable fintech startups, expanding overseas to 34 other countries. The company has since secured an EU banking license and has lodged an application to become a fully-fledged bank in the UK.
With Revolut you get access to 50+ cryptocurrencies and just like Paypal you can invest from as little as £1. With Revolut, you cannot transfer your crypto to or from any other digital wallet.
eToro – OUR PICK
Founded in 2007, eToro is a well established social trading platform that is secure and regulated up to its knees, and yes the FCA are one of those regulators.
While eToro (like Paypal, Skrill and Revolut) is not strictly a crypto exchange, it does offer a generous amount of cryptocurrencies (37) that you can trade, including Bitcoin, Ethereum, XRP, Dash and Cardano. You can also get in on the meme coin craze with Shiba Inu or Dogecoin if that’s your thing.
With eToro you can now transfer crypto assets in and out from external digital wallets, this is something that was prohibited not long ago.
As a reputable company, UK banks will not restrict any fund transfers from or to eToro.
Uphold is an American cryptocurrency exchange that operates in the UK under the Financial Conduct Authority’s Temporary Registration Regime for crypto assets. Uphold currently offer 36 cryptocurrencies in the UK and you can fund your account in GBP. You can withdraw funds to bank accounts in 36 countries, or to private wallets on five crypto networks.
There have been no reports of funding issues from UK banks to Uphold.
Coinpass is a relatively new player. It’s a UK-established crypto exchange that was introduced to investors in 2018 and was recently approved by the FCA. I have not yet had the honour of testing their platform but judging by numerous online reviews they seem to be a decent bunch. Coins available to trade are Bitcoin, XRP, Ethereum, LiteCoin Polkadot and Chainlink.
Ziglu is a crypto exchange that offers a debit card and ways to earn interest from your Bitcoin investment. Ziglu is registered with the UK financial watchdog and offers Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Tezos, Cardano and Chainlink.
With Ziglu, you cannot transfer your crypto to or from any other digital wallet but you can transfer crypto to friends who also have a Ziglu account.
If Bitcoin is all you are interested in then Mode is for you. Mode is a mobile app that lets you make payments in real money and earn cashback in the form of Bitcoin.
The app is working on loyalty programmes with shops but you can currently earn 25% cashback in Bitcoin by purchasing Mode merchandise such as hats and t-shirts.
You can also buy and hold Bitcoin with Mode.
Bitstamp is a cryptocurrency exchange based in Luxembourg, with offices in the UK. Bitstamp is one of the largest crypto exchanges in the world that is on the FCA register.
Bitstamp offers over 30 tradable crypto assets.
CoinBurp is the largest P2P crypto brokerage and FCA-registered platform and is the top-ranking UK-based crypto brokerage platform on Trustpilot. You can buy, sell and hold cryptocurrencies including Bitcoin, Ethereum, Bitcoin Cash, Litecoin, XRP and Stellar Lumens.
I think this should be enough to you get you started. As always, never invest what you can not afford to lose. If your bank blocks money transfers from and to any of the companies listed on this page, be sure to let us and other readers know below.
Coinbase just about made it onto the list. This is because despite being registered with the Financial Conduct Authority’s Temporary Registration Regime for crypto-asset firms, some UK banks are blocking transfers to Coinbase citing regulatory complications.
Based in the United States, Coinbase is one of the largest cryptocurrency platforms in the world and like Binance, it has come under increasing pressure from regulators for not doing enough to protect customers from fraud.
Where do you buy your crypto from and why? Comment below.