Buy Bitcoin in United Kingdom

Crypto Regulation in the United Kingdom

In the UK, crypto oversight currently lands in two places. Most spot exchanges and custody providers operating in the UK must register with the FCA under the Money Laundering Regulations (AML supervision). Separately, any firm marketing crypto to UK consumers must comply with the UK financial promotions regime.

FCA AML registration is not the same as FCA authorisation for investment firms. It is mainly about anti-money laundering controls like KYC, transaction monitoring, and governance. It does not make crypto protected like a bank deposit, and it does not remove market and custody risks. A quick safety step is to verify the firm on the FCA Register, and sanity check it is not on the FCA Warning List.

Quick checks:

• FCA Register check for the provider name and legal entity.
• FCA Warning List check for copycat brands and unauthorised promotions.
• Confirm the GBP deposit rail you plan to use before you send money.

Crypto promotions rules UK users actually feel

Since 8 October 2023, crypto promotions to UK consumers fall inside the financial promotions regime. The FCA's crypto promotions rules pushed stronger risk warnings, banned refer-a-friend incentives, and added friction for new users such as a 24-hour cooling-off period before a first direct offer can complete. If an exchange suddenly changes onboarding steps or adds extra disclosures, this regime is usually why.

• Crypto marketing must be fair, clear and not misleading.
• New-user cooling-off and appropriateness style checks can delay first deposits and first buys.
• Platforms and affiliates that ignore the rules are more likely to land on FCA warnings.

What is still restricted for UK retail users

The FCA bans the sale and marketing of crypto derivatives and ETNs referencing certain cryptoassets to UK retail consumers, and the FCA has repeatedly said that a firm offering retail crypto derivatives is likely operating unlawfully. Separately, the FCA has moved to allow retail access to certain crypto ETNs only when listed and traded on a UK recognised investment exchange, under strict conditions. In plain terms, spot buying on an exchange is one bucket, high-leverage products are another.

• Retail crypto derivatives: banned.
• Crypto ETNs: only in limited circumstances on recognised venues, and still treated as high risk.

Travel Rule and why withdrawals sometimes feel slow

From 1 September 2023, UK crypto firms must collect and share sender and recipient information for many crypto transfers (the Travel Rule). This is a big reason withdrawals can trigger extra questions, additional verification, or a delay when you send to a new wallet address or to another platform.

• Expect more questions when you withdraw to a new wallet or another exchange.
• Large or unusual transfers are more likely to get manual checks.

What this means for UK banks and bank transfers

UK banks are not the crypto regulator, but they enforce fraud controls and AML checks at the payment rail level. Most funding failures happen at the bank stage, especially on first-time payees, unusual amounts, or when the bank's name-check does not like the recipient details.

Banking reality:

• Faster Payments is the default GBP rail for most users. It can be near-instant, but can also take longer in edge cases.
• CHAPS is the same-day option for larger transfers at many banks, but it often carries a fee.
• BACS is slower and best treated as a fallback.
• Confirmation of Payee checks the recipient name against the account. If the name check fails, the bank may warn you or slow the transfer.
• Always copy the payment reference exactly as shown on the exchange deposit screen. Missing references are a common reason for delayed crediting.
• Name matching matters. Transfers from an account name that does not match the verified exchange profile are more likely to be held or returned.

Practical checklist before you fund an exchange from a UK bank

• Start with a small test transfer, then scale up once it clears.
• If the bank blocks the payment, try the same exchange from a higher-scoring bank account first: Halifax, Lloyds Bank, Barclays, Monzo, NatWest, Starling Bank.
• Keep screenshots of the deposit instructions and transfer confirmation. Support will ask for them.
• If you are switching banks, re-check the rail and the deposit reference. Saved payees can still fail if details change.