Where and How to Buy Crypto in Luxembourg

The world’s financial landscape is fast changing with the advent of virtual assets and cryptocurrencies such as Bitcoin, Ethereum, and other alternative assets.

Bitcoin has seen worldwide success and Luxembourg has taken note, striving to establish itself as a leader in the digital financial services industry. The small nation even amended its laws to accommodate a variety of crypto businesses and activities.

Of course, for traders in Luxembourg, there are many options when it comes to buying Bitcoin and other cryptocurrencies. Where to begin?

Bitcoin & Cryptocurrency Trading in Luxembourg

Touted as Europe’s most powerful investment management center according to BBC, it is no surprise that crypto & Bitcoin trading is widespread across the country.

Luxembourg has a proficient asset management industry, and many crypto businesses and asset managers look to its structured financial system to set up alternative investment funds, typically starting with ICOs.

Some of these businesses also include dedicated bitcoin exchanges (i.e. platforms that only trade Bitcoin) such as LocalBitcoins, as well as multi-asset exchanges that further enable diversity in asset portfolio management. 

Cryptocurrencies and Blockchain Law in Luxembourg: How is Global Trade Changing?

Since its inception in 2010, blockchain and its offshoots (i.e. bitcoin and other virtual assets) have gradually altered the speed, methods, and security of digital transactions world-over and Luxembourg aims to be at the forefront of financial digitization and regulation.

Luxembourg Finance Minister has publicly acknowledged the “added efficiency” of distributed electronic databases like blockchain technology. The government of Luxembourg rolled out a dedicated ministry for integrating new technologies such as AI or Blockchain, encouraging many blockchain developers and enthusiasts. With a myriad of ICOs springing up in Luxembourg, the need for a review of the laws guiding financial services providers in the country was evident.

Luxembourg continues to amend its laws to strengthen its anti-money laundering and counter-terrorist financing (AML/CFT) regulations as well as satisfy its bid to remain frontrunners in relation to digital assets and financial services on the global stage. 

The Use of Cryptocurrency in Luxembourg

Digital Assets, especially Bitcoin, Ethereum, and USDT are widely used in the country as a store of value and method of payment just like traditional fiat currencies. Although not officially considered legal tender in Luxembourg, many businesses (online and offline stores) accept payments in cryptos, majorly influenced by the government’s positive approach towards blockchain and cryptocurrencies.

Also, the growing number of crypto businesses like miners, exchanges, and ICOs encourage crypto investment as a store of value in the country. Some retail investors continue to gather huge amounts of bitcoins in the hopes of Bitcoin becoming a universal currency of the future.

Types of Cryptocurrency Businesses in Luxembourg

Given the blockchain and cryptocurrency industry is in its nascent stage, continuous innovation in the industry brings about novel ways to invest and offer blockchain-based services. Rated by BestStartup, the top blockchain start-ups and companies in Luxembourg offer services such as mining activities, ICOs, exchanges services, and advisory/consulting services.

Although the financial sector is the biggest explorer of blockchain technology in Luxembourg, the gaming industry (by issuing tokens as rewards), the healthcare sector, national voting agencies, and a few more sectors have also begun to explore blockchain for record-keeping purposes and added security.

With a relatively new wave of Non-fungible tokens (NFTs), it is expected to see the blockchain and crypto industry take up more business forms and use cases in coming years.

Here are the Best Exchanges to Buy Crypto in Luxembourg

With a host of crypto exchanges available today, seemingly daunting to sift through and identify the right exchanges, we have narrowed down a list of reputable exchanges you can trade your digital assets for fiat currencies and other crypto assets.

2 eToro

This platform plans to open up the financial market to everyone, offering alongside its crypto exchange services, CFD Trading, stocks and ETFs, and an integrated trading view for smooth trading.

  • Reputation: 4.5-star
  • Fees: Makers – 0.75%, Takers – 0.75%
  • Privacy: High
  • Limits: High

3 Binance

Ranked the no 1 biggest exchange in the world according to CoinMarketCap, Binance is the most reputable exchange in the world with the biggest 24hr trading volume.

  • Reputation: 5-star
  • Fees: Makers – 0.1% Takers – 0.1%
  • Privacy: High
  • Limits: High

4 CEX.io

While it started out as a cloud mining service, CEX.IO pivoted to a cryptocurrency exchange offering easy and quick payment options.

  • Reputation: 4.5-star
  • Fees: Makers: 0.16%, Takers: 0.25%
  • Privacy: High
  • Limits: High

5 Coinbase

Coinbase is the largest US-Based crypto exchange, and remains highly popular worldwide. It offers custodial services, including to major financial institutions transacting in large amounts. However, the retail community also flocks to Coinbase for its user-friendly interface, despite its high fees which are well above average.

  • Reputation: 5-star
  • Fees: Makers – 0.5% max, Takers – 0.5% max
  • Privacy: High
  • Limits: High

6 Kraken

With a presence in almost every country in the world, Kraken is one of the most widely used exchanges in the Eurozone and offers a wide variety of cryptocurrency options.

  • Reputation: 4.5-stars
  • Fees: Makers – 0.16%, Takers – 0.26%
  • Privacy: High
  • Limits: High

7 Coinmama

A brokerage service that supports crypto purchases via credit card purchases, SEPA transfers and Apple pay.

  • Reputation: 3.5-stars
  • Fees: Makers: 5.5% Takers: 5.5%
  • Privacy: High
  • Limits: High

8 Wirex

According to its website, Wirex operates in 130 countries and is the first exchange to integrate digital and traditional currencies and to support multi-currency accounts.

  • Fees: Makers: 0.2%, Takers: 0.2%
  • Privacy: High
  • Limits: High

9 Paybis

Paybis operates in over 180+ countries, supporting 10 cryptocurrencies including Bitcoin (BTC), Bitcoin Cash (BCH), Ripple (XRP), and Tether (USDT)

  • Reputation: 4-star
  • Fees: Makers: 1.5%, Takers: 1.5%
  • Privacy: High
  • Limits: High

10 Bittrex

Bittrex offers a large variety of cryptocurrencies for trade, over 200 at the last count. Combined with recently updated security, the exchange appeals to altcoin traders looking for a lot of trading options.

  • Reputation: 4-star
  • Fees: Makers: 0.2%, Takers: 0.2%
  • Privacy: High
  • Limits: High

11 Paxful

Paxful operates as an escrow service in the peer-to-peer marketplace, offering a wide range of payment methods to its users.

  • Reputation: 5-star
  • Fees: Makers: 0.1%, Takers: 0%
  • Privacy: Medium
  • Limits: High

12 LocalBitcoin

LocalBitcoin is a Bitcoin exchange offering peer-to-peer (P2P) transactions only for Bitcoin and a number of other assets.

  • Reputation: 4-star
  • Fees: Makers: 1%, Takers: 0%
  • Privacy: Medium
  • Limits: High

Luxemburg Crypto Exchange FAQs

Is Crypto legal in Luxembourg

Yes.

The Commission de Surveillance du Secteur Financier( Luxembourg’s financial supervisory authority) tirelessly issues warnings on the volatility of cryptocurrencies and the market risk associated with investing in cryptos, especially ICOs. However, the CSSF recognizes the benefits of blockchain technology and did extend its legislation guiding traditional transaction methods to blockchain transactions in 2019.

How can I buy crypto in Europe

Most exchanges operating in the Eurozone offer EU residents two main methods of purchasing Bitcoin and other cryptocurrencies – SEPA bank transfers and Credit/Debit card payments. However, alternative methods such as Interac E, Apple Pay, SWIFT, Bank wire, local bank transfers and PayPal are also available depending on which exchange you use.

Also, crypto machines such as Bitcoin ATMs are fast becoming popular and platforms like CoinATMradar offer a Bitcoin ATM map to help locate crypto machines near you to buy your cryptocurrency using fiat currencies.

Where can I buy and store Crypto

Buying and storing your crypto assets can be done on any crypto exchange offering cryptocurrency wallet services. These crypto exchanges are considered centralized and are responsible for the storage and security of your private keys, allowing you the ability to trade real-time crypto prices.

Can we buy Cryptocurrency in all countries

The acceptance and legal status of digital currencies still vary all over the world. A few countries are still undecided on its usage, some very watchful and more open-minded to explore its benefits by testing out with a CBDC (Central Bank Digital Currency) solution, while others outrightly  banning them for various reasons.

So it is advisable to check your country’s stance on cryptocurrencies and related asset classes.

Is Crypto legal in Europe

Although highly regulated, cryptos are legal in the Eurozone.

In a bid to strengthening its anti-money laundering regulations, the EU’s latest laws aim to enable transaction monitoring for cryptocurrencies and issue a ban on anonymous crypto activities.

Bitcoin Wallet App

To send Bitcoin, you simply need to copy the address or public key you’re sending money to and paste it into the recipient section.

This process is guided with on-screen instructions.

To open a Bitcoin wallet, simply download the app for Android or iOS below!

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