Coinbase UK Review 2024 - Is Coinbase Legal in the UK?
Choosing a trustworthy cryptocurrency exchange is crucial as it directly impacts the safety and security of your digital assets. The high risk of scams in this area necessitates extreme caution from users.
Our analysts have noticed a growing interest in Coinbase services among users in the UK. However, questions remain regarding its safety and legal status within the UK. Traders Union experts have addressed this concern by crafting a detailed review that explores both the pros and cons of using Coinbase.
So, let us tell you if Coinbase is allowed in the UK and if it's safe to use for trading.
Short summary about the Coinbase exchange
Coinbase is a popular cryptocurrency exchange, especially sought-after among novice traders. It allows you to trade all cryptocurrencies including Bitcoin, Ethereum, Litecoin, Ripple, BitcoinCash, and others. You will find a web version and an application for a smartphone based on iOS or Android. The crypto exchange provides services to users from 100 countries with more than 43 million active traders registered on the exchange. The total assets on the platform are equivalent to over USD 90 billion. The exchange brings to the table one-of-a-kind training programs that allow you to earn money during the learning process by improving your expertise in the crypto market. Learn what Coinbase is and how the exchange works.
| 💰 Account currency: | XBT |
| 🚀 Minimum deposit: | Minimum deposit 2 units of local currency (e.g., $2 or 2 Chilean pesos) |
| ⚖️ Leverage: | Up to 1:3 |
| 💱 Spread: | Market |
| 🔧 Instruments: | Dollars, cryptocurrencies |
| 💹 Margin Call / Stop Out: | No |
Coinbase Pros and Cons
👍 Coinbase Pros:
•you can trade a vast array of cryptocurrencies on the exchange;
•hassle-free registration and verification;
•all assets are in offline storage;
•the exchange ensures the security of users’ assets;
•available are a free e-wallet and a virtual card;
•complex solutions for individuals, businesses, and developers;
•powerful analytical base and unique training guides.
👎 Coinbase Cons:
•there are no passive earning options;
•some of the information is available in English only.
Is Coinbase legal in UK? Does it have a license?
Before you start working with an exchange, it is important that you check whether it has a financial license. Exchanges may be regulated by various financial regulatory authorities, including central banks, securities and exchange commissions or even regional bodies. A cryptocurrency exchange may not be regulated in UK, but it can hold a license issued by another reliable regulator. Below, you can find out about the regulation of the Coinbase cryptocurrency exchange.
| Coinbase | |
|---|---|
| SEC | No |
| FINRA | No |
| SIPC Protection | No |
| Other regulators | Regulated in 45 States in the USA |
Cryptocurrency exchanges often hide information about the company, and it could be very difficult to find it to check whether the crypto exchange is legit or not. However, you still need to try.
Take notice of the following information:
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Name of the broker.
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Country of registration.
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Registration license number.
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Legal address.
As a rule, this kind of information can be found in the About Us section, in the disclaimer or in the regulatory documents of a cryptocurrency exchange: Terms and Conditions. As for the license, a crypto exchange might not have this document. This is due to the peculiarities of cryptocurrency regulation, as many countries still have not adopted the licensing law in this area.
Do I recommend using Coinbase in the UK?
The Coinbase cryptocurrency exchange can be chosen by clients from UK, although there are certain nuances. The exchange does not have a financial license, but that is rather because the financial regulator of UK does not issue the licenses to crypto exchanges in general. There have been certain security-related incidents, but those very singular cases. The reputation of the exchange can be considered standard.
FAQ
Can I work with crypto exchanges considering that they don’t have a license in UK?
The fact that a crypto exchange does not have a license doesn’t mean that traders from UK will have problems while working with it. Cryptocurrency exchanges are not subject to licensing in many countries, while there are many exchanges with good reputation. Assess the available information about the exchange and check its reputation.
What security methods for account protection do crypto exchanges employ?
Cryptocurrency exchanges may offer various security methods. These include the two-factor authentication, first and foremost, and also such methods as a security question, additional passwords, etc.
Can an exchange that has had a security-related incident in the past be trusted?
You need to check whether such incidents were regular. If it was one episode several years ago, while the reputation of the exchange is good, you can work with such an exchange.
Should I work with an exchange if I have doubts about its reputation?
No. Always choose the cryptocurrency exchanges that have a good reputation.
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Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.