How to Sell Crypto in Luxembourg in 2022

After the excellent year we’ve just had in crypto, many people are looking to cash out. However, it’s not as easy as it sounds! To safely sell your crypto, you need to know which exchanges and services to use and which ones to avoid. It also helps to have an understanding of taxation in your local area.

Ready to sell your crypto? Let’s get started!

How to Sell Crypto in Luxembourg

Cryptocurrency trading in Europe is growing in acceptance, and with adoption comes regulation.

With that in mind, it’s essential to understand the crypto exchanges and laws that guide trading in certain areas. This enables you to complete your transactions on superior exchanges and to stay within the confines of the law

In this text, we take a look at the best exchanges to sell crypto in Luxembourg as well as the laws that govern the use of digital assets in Luxembourg.

Cryptocurrencies and Blockchain Law in Luxembourg

Luxembourg has always been at the forefront of welcoming innovation in its financial sector. The Luxembourg Law of 2019 on distributed ledger technology (DLT) recognizes the use of public electronic recording mechanisms such as blockchain.

With the development of cryptocurrency and blockchain technology in Luxembourg, regulations have been put in place for Cryptocurrency Exchanges and Virtual Asset Service Providers (VASPs) to follow all requirements and obtain payment institution license from CSSF before they can begin operation. Although there are no specific cryptocurrency regulations, the overall attitude of the authority towards cryptocurrency is positive.

Taxation of Cryptocurrency in Luxembourg  

Based on a CSSF Circular released on 26th July 2018 on digital assets, cryptocurrencies constitute intangible assets for direct tax purposes. Also, the rate due is dependent on the category of the taxpayer.

In addition, the European Court of Justice (ECJ) ruled in 2015 that buying and selling digital currencies is deemed a supply of services that is exempt from value-added tax (VAT) in all European Union (EU) member states, including Luxembourg.

How to Choose the Best Exchange to Sell Crypto

Several factors are considered in choosing the best exchange to sell Crypto assets. Some of the crucial factors are

  • Customer support
  • The simplicity of the user interface
  • Exchange fees and investment policy
  • Diversity of altcoin choices
  • Level of liquidity
  • Security of financial assets
  • The reputation of the exchange

Our list below accounts for features and limitations that come with exchanges, allowing you to make an informed decision on where to sell or buy cryptocurrencies.

The Best Exchanges to Sell Crypto in Luxembourg

2 Abra

Abra is a mobile crypto exchange and wallet serving investors in the US and 150 other countries.

  • Headquarters: San Francisco, US
  • Fees: Free (excluding spread fees)

Pros (What We Like)

  • No fees to trade 100+ cryptocurrencies (excluding spread fee).
  • It allows borrowing against crypto holdings, with payback interest rates of 0% to 9.95%.
  • Users can earn up to 8% interest on crypto or USD stablecoins.

Cons (What We Don’t Like)

  • High fees for Visa or Mastercard transactions.
  • Limited transparency on the exact exchange spread rates.

3 Bitstamp

Bitstamp is a bitcoin exchange based in Luxembourg that allows trading between fiat currency, bitcoin and other cryptocurrencies.

  • Headquarters: London, UK
  • Fees: Up to 0.5%

Pros (What We Like)

Allows users to buy cryptocurrencies with fiat currencies. Users can fund their accounts using credit cards and bank transfers.

Cons (What We Don’t Like)

Limited selection of cryptocurrencies for trading.

4 Huobi

Huobi is a cryptocurrency exchange initially aimed at the Chinese market but has since expanded to more than 130 countries.

  • Headquarters: London, UK
  • Fees: Up to 0.2%

Pros (What We Like)

  • Over 100 cryptocurrencies and tokens are supported on the main exchange.
  • Alternative HADAX exchange listing altcoins that are voted on.
  • High-level cybersecurity. Strong customer support.

Cons (What We Don’t Like)

  • Fiat deposits and withdrawals are not supported.
  • Lengthy account registration process.

5 Bisq

Bisq (formerly Bitsquare) is an open-source desktop application that allows you to buy and sell bitcoins in exchange for national currencies or alternative cryptocurrencies.

  • Headquarters: Barcelona, Spain
  • Fees: Up to 0.1% (0.3% for order takers)

Pros (What We Like)

  • Pros: P2P marketplace available around the globe.
  • Arbitrators are incorporated to exchange.
  • A wide range of fiat and cryptocurrencies is available.

Cons (What We Don’t Like)

  • High fees.
  • The supply of coins usually comes with low volumes.
  • Lack of account protection functions such as 2FA.

6 Poloniex

Poloniex is a US-based cryptocurrency exchange that allows for the buying or selling of digital assets.

  • Headquarters: Wilmington, U.S.
  • Fees: 0.125%

Pros (What We Like)

  • Lots of cryptocurrencies are listed.
  • Good range of customer support options.
  • No verification unless trading large amounts.

Cons (What We Don’t Like)

  • Doesn’t allow you to use traditional payment methods such as a debit/credit card or a bank account.

7 Luno

Luno is simply a platform that connects buyers with sellers, much similar to other exchanges/markets.

  • Headquarters: London, UK
  • Fees: Up to 1% for takers (0% for makers)

Pros (What We Like)

  • Quick and easy way to trade bitcoin against fiat currencies.
  • Businesses can accept and pay in crypto with a business account.

Cons (What We Don’t Like)

  • Only two cryptos are available to trade (Bitcoin and Ethereum).
  • No margin lending or advanced tradings tools.
  • Low liquidity.

8 Bitpanda

Bitpanda is a cryptocurrency exchange based out of Austria that primarily services the European economic area.

  • Headquarters: Vienna, Austria 
  • Fees: Up to 1.49%

Pros (What We Like)

  • High liquidity.
  • Simple interface.
  • Fiat currency deposits and withdrawals.

Cons (What We Don’t Like)

  • Verification required for withdrawals.
  • A small variety of tradeable cryptocurrency assets.
  • No advanced trading features.
  • Relatively high fees.

9 Changelly

Changelly is a non-custodial instant cryptocurrency exchange, acting as an intermediary between crypto exchanges and users.

  • Headquarters: Valletta, Malta
  • Fees: 0.5% flat rate

Pros (What We Like)

  • Flat cryptocurrency exchange fee.
  • No history of security breaches.
  • Offers widgets and API.
  • 24/7 live customer support.

Cons (What We Don’t Like)

  • Exchange network can be slow.
  • Quite high fees when changing flat currencies.

10 LocalBitcoins

LocalBitcoins is a peer-to-peer Bitcoin exchange: a marketplace where users can buy and sell Bitcoins to and from each other.

  • Headquarters: Helsinki, Finland
  • Fees: 1% for the seller, free for buyers. Exchange rates may vary.

Pros (What We Like)

  • Wide variety of payment options.
  • Free for party responding to the advertisement.
  • Quick transactions.

Cons (What We Don’t Like)

  • Dealing directly with buyers and sellers can result in scam attempts.
  • Prices for Bitcoin vary and can range below or above normal market rates,so vigilance is required.

11 Paxful

Paxful is a peer-to-peer cryptocurrency exchange and digital wallet provider where customers can buy and sell cryptos using over 300 payment methods.

  • Headquarters: New York, U.S.
  • Fees: 1% fee for sellers, free for buyers

Pros (What We Like)

  • Escrow trading.
  • Mobile app with full account features.
  • Numerous supported payment methods.

Cons (What We Don’t Like)

  • Unregulated exchange.
  • Limited customer support options.
  • High exchange rates.
  • Increased possibility of scam attempts.
  • Strict KYC.


Do I need a license to sell cryptocurrency?

CSSF, the Luxembourg regulating body, requires new crypto businesses to obtain a payments institution license if they wish to begin trading.

How do I turn my cryptocurrency into cash?

You may request a withdrawal from an exchange/wallet that supports swap to your local currency. The withdrawal will be paid into your bank account. You can also make use of the CryptoWallet Debit Card to withdraw your crypto as cash from an ATM.

Is it hard to sell crypto for cash?

Not at all. You can either sell on a cryptocurrency exchange like CryptoWallet or via pair-to-pair trading platforms.

Is selling crypto for cash legal

Legality depends on where you live. For example, Bitcoin is currently banned in China, Bolivia, Columbia, and Ecuador, but is legal for individuals and businesses with a license in Luxembourg.

What is the price of Bitcoin in Luxembourg?

Bitcoin price in Luxembourg reflects the general price of Bitcoin across the globe. Bitcoin price changes from time to time.