Discover how to buy crypto with pound sterling with a UK-based cryptocurrency exchange. Learn the history of trading crypto in the UK, from its initial years of difficulty to the much-improved and safer trading environment for UK-based traders. Finally, discover OANDA Crypto, the leading UK-based crypto exchange for personal investors in the UK.
How to Buy Crypto in Pound Sterling | The Brief Guide
As a UK investor, you might have faced difficulties in finding reputable exchanges, making deposits in GBP and withdrawing funds in the same currency.
Find out how to buy crypto in pound sterling (GBP) as well as the struggles and progress made in reaching the current point where you can buy bitcoin and other crypto assets in GBP.
Finally, we will introduce OANDA Crypto, the leading UK-based exchange that simplifies the process of trading cryptocurrency.
The Early Years of Buying Crypto in the UK
In the early days of bitcoin, around 2009-2012, buying cryptocurrency in the UK was a cumbersome process. The concept of digital currencies was relatively new, and there were very few platforms available for purchasing bitcoin and other cryptocurrencies. You often had to rely on international exchanges, which presented several challenges.
These included limited availability, with few exchanges operating in the UK, and those that did were not well-known or trustworthy. Another problem was currency conversion. You had to convert GBP to USD or EUR to buy bitcoin or other cryptocurrencies, which involved additional fees and generally unfavourable exchange rates. Regulatory uncertainty was an additional issue.
The regulatory environment was unclear, causing hesitation among potential investors and exchanges.
The Early Emergence of UK-Based Crypto Exchanges (2013-2015)
As cryptocurrency gained popularity, the need for UK-based exchanges became evident. By 2013-2015, several UK-focused platforms began to emerge, aiming to provide a more seamless experience for British investors. However, these early exchanges were not without their issues.
Many platforms only accepted wire transfers, which could take several days to process, leading to limited payment methods. Additionally, some exchanges lacked robust security measures, resulting in incidents of hacking and fraud. The user experience was another significant issue, as the user interfaces were often clunky and difficult to navigate, deterring less tech-savvy investors. Despite these challenges, the availability of UK-based exchanges marked a significant step forward, making it somewhat easier to buy crypto with GBP.
Regulatory Developments in the UK Crypto Space
The UK's regulatory landscape for cryptocurrencies has evolved significantly over the years. In 2014, the Financial Conduct Authority (FCA) issued a warning about the risks associated with cryptocurrencies, highlighting issues such as volatility and fraud. This was a wake-up call for many investors and exchanges, prompting a push for better security and compliance measures.
By 2018, the UK government and the FCA took more concrete steps to regulate the crypto market. The Fifth Anti-Money Laundering Directive (5AMLD) came into effect, requiring crypto exchanges to register with the FCA and comply with stringent anti-money laundering (AML) and know-your-customer (KYC) regulations. These changes aimed to protect investors and improve the overall legitimacy of the market.
While these regulations provided a safer environment for trading, they also increased the operational complexity for exchanges, leading to higher costs and, in some cases, the closure of smaller platforms.
Challenges That UK-Based Investors Have Faced with GBP Crypto Transactions
One of the persistent challenges for UK crypto investors has been the ability to easily deposit and withdraw funds in GBP. Here are some of the key issues you might have encountered:
- Bank Restrictions: Many UK banks were hesitant to deal with crypto exchanges, often blocking transactions related to cryptocurrency purchases. This created significant hurdles for investors trying to move their money in and out of exchanges.
- Exchange Fees: Converting GBP to other currencies and back added extra costs to transactions, reducing the overall profitability of crypto investments.
- Withdrawal Delays: Withdrawing funds from exchanges to UK bank accounts could be slow, sometimes taking several days to process
The Rise of Better Platforms
In more recent years, the landscape for buying crypto in the UK has improved considerably. Several exchanges have worked hard to offer better services tailored to UK investors. These platforms have focused on:
- GBP Support: More exchanges now support direct GBP deposits and withdrawals, eliminating the need for currency conversion.
- Improved Payment Methods: Payment options have expanded to include faster methods like Faster Payments Service (FPS), reducing transaction times.
- Enhanced Security: Exchanges have implemented better security measures, such as two-factor authentication (2FA) and cold storage for funds.
Despite these advancements, finding a platform that combines all these features while maintaining high standards of security and user experience can be a challenge for UK-based personal investors.
OANDA Crypto: Simplifying Crypto Trading for UK Investors
In the midst of this evolving landscape, OANDA Crypto has emerged as a game-changer for UK-based cryptocurrency trading. Here’s how OANDA Crypto makes the process easier for you:
- GBP Support: OANDA Crypto allows you to deposit and withdraw funds directly in GBP, eliminating the hassle and cost of currency conversion.
- Fast Transactions: Leveraging the Faster Payments Service (FPS), OANDA Crypto ensures that your transactions are processed quickly, whether you’re depositing or withdrawing funds.
- Regulatory Compliance: As a UK-based exchange, OANDA Crypto is fully compliant with FCA regulations, providing you with a secure and trustworthy platform for trading.
- User-Friendly Interface: OANDA Crypto offers an intuitive user interface, making it easy for both beginners and experienced traders to navigate the platform and execute trades.
- Robust Security: With advanced security measures, including 2FA and cold storage, OANDA Crypto ensures that your funds are protected against potential threats.
Buying Crypto in Pound Sterling with a Reputable UK-based Exchange: Wrapping Up
The journey of buying cryptocurrency in the UK has been marked by significant challenges, from dealing with international exchanges and currency conversion issues to navigating regulatory uncertainties and security concerns. Over the years, the landscape has improved, with better platforms emerging to cater to the needs of UK investors.
However, the process of buying crypto with GBP and ensuring fast, secure transactions has remained a persistent challenge. This is where OANDA Crypto stands out. By offering seamless GBP support, fast transactions, regulatory compliance, and robust security, OANDA Crypto makes trading cryptocurrency much easier and more accessible for UK investors.
If you’re looking to invest in cryptocurrencies with ease and confidence, OANDA Crypto provides the solutions you need to navigate this exciting market.
Disclaimer
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 minutes to learn more.