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Author: Admin | 2025-04-27
For any Brit looking to put some money into Bitcoin, the answer to the question "Is Bitcoin legal in the UK?" would often determine whether they will proceed or not.Table of Contents Cryptocurrency Regulations in the UK Bitcoin and other cryptocurrencies Crypto exchanges Buying & Selling Mining: Is Bitcoin Mining Legal in the UK? Trading Derivatives ATMs Spending Bitcoin You will definitely feel at ease to learn that it is not a crime to invest in Bitcoin; otherwise, we would have 4.7 million Britons (the number of UK residents that have bought cryptocurrencies) behind bars.But, while that knowledge is a good start, you’ll gain more insight by reading this in-depth guide about Bitcoin regulation in the UK. This guide is thorough as it goes beyond the surface question: is Bitcoin legal in the UK?We cover every nook and cranny of the Bitcoin and cryptocurrency industry and let you know how regulations in the UK affect both business and end-consumers. To begin, here’s an overview of cryptocurrency regulations in the UK.Cryptocurrency Regulations in the UKCrypto regulation in the UK is fragmented. In other words, there is no single document that specifies the regulatory requirements for all industry participants. The reason is not far-fetched. The industry is still in its infancy, and imposed rules may need amendment within a short time.Despite that unique challenge, the United Kingdom Financial Conduct Authority (FCA), Her Majesty's Revenue and Customs (HMRC), and the Bank of England (BoE) have, at one point or the other, published guidance that forms the basis for bitcoin regulation in the region.In all, the FCA is the primary UK government regulator for cryptocurrencies since all businesses in the industry must apply for the requisite license and obtain approval before setting up shop. The FCA maintains a register of all crypto asset businesses in the region and often issues warnings against unregistered operators.On the other hand, HMRC oversees crypto-related tax matters and has specified taxable events in its detailed guidance.Next, we consider the FCA’s classification of the different types of cryptocurrencies that exist today.Bitcoin and other cryptocurrenciesBitcoin and other cryptocurrencies are “properties” according to the UK Jurisdictional Taskforce (UKJT) and falls into three main categories as per the FCA:Is cryptocurrency legal in the UK? An Excerpt From an FCA Guidance on Crypto AssetsExchange TokensAt the onset, we answered the question, is Bitcoin legal in the UK? The affirmative ‘Yes’ answer stems from a classification of cryptocurrencies provided by the FCA in 2019.According to that guidance, tokens where there is usually not a single issuer to enforce rights against, as with Bitcoin fall outside of the regulator’s purview and are termed “exchange tokens.” The FCA agrees that Ether (ETH) and Litecoin (LTC) are also
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