Where to Buy, Hold, Sell and Spend Cryptocurrency in the UK
Crypto fever is spreading. People who didn’t want to hear about imaginary coins a couple of years ago are now trying to get into the cryptocurrency world. Asking friends, reading articles, listening to podcasts. The info is everywhere, but it can be overwhelming for beginners. This article will help with the basics for the British market. And reveal if there are any services accepting cryptocurrency as a payment method in the UK.
What Services Can You Spend Cryptocurrency on in the UK?
Although cryptocurrencies get more attention every day, most companies still don’t accept them as payment methods. Some giant companies, such as Amazon and Facebook, are working on their currencies. Smaller but smart companies are implementing crypto into their business models. The online dating industry is a great example of many other industries. Some dating sites have accepted Bitcoin as the payment method for years. The leading local dating site for singles dating in the UK probably won’t wait long before joining the hype as many platforms are thinking about introducing new modern payment methods for dating services. They know connecting people in the area and flirt on live chat soon won’t be enough. So, in order for any single throughout Britain to find a partner online, the service must be convenient to use.
Starbucks realized that and started using cryptocurrencies. Philipp Plein became the first fashion company to accept crypto as a payment method. Not just Bitcoin, but 15 different currencies. Buying elegant clothes, creamy coffee, or paying for packages on dating sites with real money may soon become just a memory of past times. To get there, we have to learn how and where to buy and sell cryptocurrency.
How British People Can Buy and Sell Crypto
PayPal dropped a bomb when they announced they’re bringing cryptocurrencies to their clients in the UK. British people can now buy, hold and sell Bitcoin, Ethereum, Litecoin, and Bitcoin Cash over their PayPal accounts. Paying directly with crypto isn’t possible yet, though. For example, if someone wants to pay for membership on a dating site in Bitcoin using their PayPal balance, their Bitcoin will exchange to GBP or USD before the transaction happens. So, for now, PayPal is good for investing and holding crypto, but not so much for spending. A similar situation is with Revolut, which is very popular in the UK. It’s easy to buy numerous cryptocurrencies there, but there’s a difference between PayPal and Revolut crypto wallets. It’s possible to send any currency to other members on Revolut. EToro is another famous platform for crypto trading, but the downside for the British market is transactions in USD. That means losing some money on conversion fees, but the rest of the platform is good and easy to use.
Cryptocurrency Regulations in the UK
The UK government still isn’t clear about cryptocurrencies, but they’d confirmed crypto assets are property. That’s a big step because if something is property, it needs to be protected and regulated somehow. Although the Bank Of England doesn’t consider cryptocurrency money, they issued some guidelines and warnings.
- From 10 January 2021, all UK crypto-asset firms (including recognized cryptocurrency exchanges, advisers, investment managers, and professionals) with a presence or market product in the UK or provide services to clients in the UK must register with the Financial Conduct Authority (FCA). That ensures a safer environment for clients in the UK.
- Existing tax principles and rules generally apply because there aren’t specific laws for crypto.
- Entities involved in the crypto business must comply with the Money Laundering, Terrorist Financing, and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs).
- Cryptocurrencies legally separate into exchange tokens, utility tokens, and security tokens.