UK Crypto Exchange Regulation, Fees and Custody Risks

Summary

The document compares UK-facing crypto exchanges, focusing on the operating entities behind Kraken, the stated regulatory status of Payward Ltd, and the distinction between cryptoasset registration and protection for customer funds. It explains that FCA registration addresses compliance obligations such as anti-money-laundering checks, while crypto holdings are not covered by the UK Financial Services Compensation Scheme. It also describes proof-of-reserves reporting and cold storage as exchange security practices, while making clear that these do not amount to government insurance.

For trading costs, the guide introduces the maker-taker distinction: orders that add liquidity are described as maker orders, while those that remove it are taker orders. It gives examples of exchange fees and token-based discounts, and compares platforms by asset selection, security claims and intended user type. The comparison is not an independent audit, and exchange features, fees and regulation can change. Its account-opening section is incomplete, and some claims are promotional, so readers should verify current terms and regulatory records before relying on them.

Key ideas

• FCA cryptoasset registration imposes compliance requirements but does not make crypto deposits eligible for FSCS protection.
• Proof of reserves and cold storage are described as exchange safeguards, but they do not guarantee recovery if an exchange fails.
• Maker orders add liquidity and may have different fees from taker orders that remove liquidity.
• The comparison weighs asset range, costs and security features, but exchange-specific claims require independent verification.
• Fees, token discounts, regulatory status and supported assets can change over time.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.