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Due to its popularity and legislation, purchasing cryptocurrency and trading is entirely legal in the United Kingdom. However, cryptocurrency derivatives trading is currently heavily regulated. These regulations are maintained by:
- the UK’s Cryptoassets Task Force formed by HM Treasury
- Financial Conduct Authority
- the Bank of England
In accordance with this, you are expected to pay taxes as a UK resident based on your crypto earnings.
Investing in the UK is in general, easy, but you might encounter problems with its strict regulation, so here’s a guide to buying cryptocurrency in the United Kingdom.
Crypto Exchanges Recommended for British Customers
How Easy is it to Buy Crypto in the UK?
The Financial Conduct Authority has introduced some arrangements to reduce and eliminate money laundering risks in crypto exchanges in the UK which consists of Know Your Regulation (KYC) as well as Customer Due Diligence (CDD) procedures to ensure no illegal activities are done with cryptocurrencies.
However, aside from the strict laws and regulation, the UK is imposing upon crypto trading, buying crypto is easy. The UK supports almost all of the cryptocurrency exchange in the market that adheres to its regulation, so just imagine how easy it is to acquire crypto with broad choices of investment.
Step-by-Step Guide for Buying Crypto in the UK
Buying crypto in the UK, as said above, is easy and very accessible. The UK supports Bitcoin ATMs as well as crypto exchanges alike, however, due to the small number (23) of Bitcoin ATMs in the country, crypto exchange is still the best way to acquire cryptocurrency in the UK.
To start, choose a crypto exchange that you think suits you.
Create and verify an account to the chosen exchange.
Link your bank accounts, or any mode of deposits to top up your crypto exchange.
Once done, choose the cryptocurrency you wish to buy, then click Buy to initiate the buy option.
Fill up all the necessary information, then wait for your cryptocurrency to arrive at your designated wallet.
Can You Legally Buy Cryptocurrency in the UK?In the United Kingdom, owning and trading bitcoin is not illegal in and of itself. Any owner is eligible to use it in any crypto-related business in the UK as long as they follow the country’s rules and regulations, which include paying and reporting taxes correctly, as well as using cryptocurrency solely for legal purposes.
Are Bitcoin and Ethereum for Sale in the UK?Bitcoin and Ethereum are the top one and two cryptocurrencies in terms of market cap, and they are also easily accessible across the globe. British traders can freely buy Bitcoin and Ethereum in any exchange that supports the cryptocurrencies.
Are there strict regulations around Bitcoin in the UK?In the United Kingdom, cryptocurrencies such as Bitcoin are regulated for money laundering purposes. To continue operating, cryptocurrency exchanges must register with the Financial Conduct Authority FCA, which monitors anti-money laundering (AML) and counter-terrorism financing (CTF) activities. This involves requiring Know Your Customers (KYC) as well as Customer Due Diligence (CDD) measures to determine the customer’s identity within the context of crypto regulations. Measures include confirming your personal details such as identification cards, proof of residence, and the user’s legal name. To summarize, the UK’s crypto regulation is extremely complex and stringent, whilst keeping track of numerous problems to be addressed.
Frequently Asked Questions
There are only a few Bitcoin ATMs in the United Kingdom, which has 23 in total.
In order to cash out Bitcoin in the United Kingdom, you’ll need a cryptocurrency exchange as well as a bank account. If you have a significant quantity of Bitcoin and want to convert it to fiat money, you will need:
- Click the Bitcoin icon in your designated wallet.
- Next is to select Withdraw, which you will need to pick a bank transfer.
- Link your bank account to your crypto exchange.
- Select your bank account on the Withdraw page, fill in how much Bitcoin you want to cash out, and fill out all the required information.
- Once it’s done and you have executed the trade, wait for the balance to reflect on your account.