Crypto in the UK: The Complete Guide

AI summary

The UK is a leading European hub for cryptocurrency, with legal but strictly regulated trading overseen by the FCA and subject to anti-money laundering rules. Popular coins include Bitcoin, Ethereum, and Solana, and users must pay Capital Gains Tax on profits. The government is also exploring a central bank digital currency, while secure storage and compliance remain key for investors.

The United Kingdom has emerged as one of Europe's leading hubs for cryptocurrency, with London at the forefront as a global fintech center attracting exchanges, blockchain startups, and investors. Crypto in the UK is legal but regulated under strict FCA oversight and anti-money laundering (AML) rules to ensure compliance and investor protection. Millions of Britons actively trade Bitcoin, Ethereum, Solana, stablecoins, and other digital assets. At the same time, the government explores the launch of a central bank digital currency (CBDC), often called the Digital Pound or Britcoin. This guide explains everything you need to know about cryptocurrency in the UK in 2025, including legality, taxation, best exchanges, secure wallets, mining, and NFTs.

Key Takeaways

• Legal status: Crypto in the UK is legal, but regulated by the FCA.
• Regulation: Exchanges must register with the FCA and comply with AML rules.
• Taxes: HMRC treats crypto as property, meaning gains fall under Capital Gains Tax.
• Popular coins: Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and stablecoins like USDT and USDC dominate the market.

Is Crypto Legal in the UK?

Yes — crypto is legal in the UK. The FCA regulates cryptocurrency firms, requiring exchanges and wallet providers to register and follow strict AML rules. That requirement ensures users trade on platforms that meet compliance standards.

While the UK has not introduced bespoke crypto laws yet, regulators continue tightening oversight to protect investors. The government is also developing a CBDC, the Digital Pound (Britcoin), which could modernize payments and complement, not replace, existing cryptocurrencies.

How to Buy Cryptocurrency in the UK

Buying digital assets in the UK is simple using secure and regulated platforms. Here's a step-by-step guide tailored for UK users with Tangem:

Step 1 – Get a Tangem Wallet

Purchase a Tangem card or ring, download the Tangem app (available on iOS and Android), and set up your self-custody wallet.

Step 2 – Open the App and Choose Your Crypto

In the app, tap Buy, then select the cryptocurrency you want (Bitcoin, Ethereum, Solana, stablecoins, etc.) and the amount in GBP.

Step 3 – Select Provider and Payment Method

Tangem integrates services such as Mercuryo and Simplex, letting you pay with debit/credit cards, Apple Pay, Google Pay, or Faster Payments/SEPA bank transfers. Bank transfers usually have the lowest fees, while cards are faster but costlier.

Step 4 – Complete Verification (KYC)

Under UK regulations, most providers require identity verification. You'll need a passport, a driving license, a national ID, and proof of address.

Step 5 – Confirm and Receive

Once verified, confirm the purchase. The crypto is sent directly to your Tangem wallet address, giving you complete control and security. Using Tangem ensures your assets stay in self-custody, rather than on an exchange, while complying with UK crypto regulations.

Best Crypto Exchanges in the UK (2025)

Here's a quick comparison of the top exchanges available in 2025:

How to Store Your Crypto Safely in the UK

Storing your crypto securely matters more than where you buy it.

Risks of Keeping Crypto on Exchanges

Leaving assets on exchanges exposes you to hacks, FCA enforcement actions, or failures like FTX. The safest practice is moving funds to a personal wallet.

Types of Wallets

• Software wallets (MetaMask, Trust Wallet, Revolut Wallet): Free, convenient, but internet-connected.
• Hardware wallets (Tangem, Ledger, Trezor): Offline storage, highly secure, recommended for long-term investors.

Using Tangem's cold wallet in the UK ensures your Bitcoin and altcoins remain under your control.

Is Crypto Taxed in the UK?

Yes. HMRC taxes cryptocurrency in the UK under Capital Gains Tax rules.

Tax Rate and Rules

• HMRC treats crypto as property, not currency.
• You pay tax when you sell, swap, or spend crypto.
• CGT rates: 10% for basic-rate taxpayers, 20% for higher and additional-rate taxpayers.

How to Calculate Crypto Tax

To calculate crypto tax in the UK, subtract your purchase price from your selling price. If you trade often, use tools like Koinly, Accointing, or TaxBit for automatic calculations and HMRC-ready reports. Check our Complete Guide on Crypto Taxes in the UK

Is Crypto Mining Legal in the UK?

Yes, crypto mining is legal in the UK, but energy costs make it less profitable than in other countries.

Mining Regulations

Mining is lawful, though subject to environmental and electricity policies. No specific ban exists, but rising energy prices reduce returns.

How to Mine Crypto in the UK

• Use ASICs or GPUs depending on the coin.
• Join mining pools like Slush Pool, F2Pool, or ViaBTC for consistent rewards.
• Factor in electricity tariffs before starting.

How to Buy NFTs in the UK

Once you have crypto in your Tangem wallet, you can start exploring NFTs. Here's how to buy NFTs in the UK step by step:

Step 1 – Enable NFT Support in the Tangem App

Turn on NFT support in your Tangem app if it's not active. It allows you to view and manage your NFT collection directly.

Step 2 – Choose an NFT Marketplace

Go to a marketplace such as OpenSea, Rarible, Blur, or SuperRare.

Step 3 – Connect Your Tangem Wallet via WalletConnect

On the marketplace, click "Connect Wallet" → select "WalletConnect" and follow the prompts to link your Tangem wallet securely.

Step 4 – Browse and Select an NFT

Search collections, explore listings, and choose the NFT you want to buy.

Step 5 – Confirm and Pay

Click "Buy now" (or place a bid). The marketplace will prompt you to confirm through your Tangem wallet. Ensure you hold enough crypto (ETH, MATIC, or SOL) to cover the NFT price and gas/transaction fees. For lower costs, you can use blockchains like Polygon instead of the Ethereum mainnet for lower costs.

Step 6 – Finalize Ownership

Confirm the transaction by tapping your Tangem card when prompted. Once the blockchain validates it, the NFT will appear in your Tangem wallet collection.

Tax note: In the UK, NFT transactions fall under Capital Gains Tax (CGT) rules, meaning any profit from selling NFTs is taxable.

Future of Crypto in the UK

The UK continues to strengthen its position as a global fintech hub. Experts expect the planned Digital Pound, stricter FCA regulation, and increasing institutional interest to drive adoption. Retail users remain enthusiastic, and London's financial ecosystem gives the UK a unique edge in crypto innovation.

FAQ about Crypto in the UK

Is Bitcoin legal in the UK?

Yes. Bitcoin and other cryptocurrencies are legal and regulated by the FCA.

Do you pay tax on crypto in the UK?

Yes. Gains are subject to Capital Gains Tax under HMRC rules.

Can you mine cryptocurrency in the UK?

Yes, but high energy costs make it less profitable.

What is the best crypto exchange in the UK?

Popular choices include Coinbase, Kraken, Gemini, and Bitstamp.