To choose a crypto exchange safely, verify its authorisation on your own national regulator's public register first, confirm it is permitted to serve your country and offer the products you want, and read the prescribed risk warning rather than the marketing. Never treat a high referral or sign-up bonus as a sign of safety — in the UK the FCA bans those incentives precisely because they distort the decision. Crypto is high-risk and you can lose all you invest; this is information, not financial advice.
Start with regulation, not features
In a money-at-risk decision, regulatory standing matters more than the slickest app. Find the exchange's legal entity and check it against the relevant register: the ESMA CASP register in the EU, the FCA register in the UK, ASIC in Australia, MAS in Singapore, or VARA in Dubai. A licence in one country does not mean availability everywhere — confirm the specific entity that serves your country and which products it may legally offer there.
A stated licence is a claim until you verify it. Marketing pages and 'as featured in' logos are not proof; the regulator's public register is. In the EU specifically, look for a confirmed MiCA CASP authorisation on the ESMA register, and remember a CASP licence in one member state passports across the EU/EEA.
Check custody, security and what is actually yours
Regulation tells you who supervises the exchange; custody tells you what happens to your assets. Look at whether client funds are segregated from company funds, whether the exchange publishes proof-of-reserves or audited financials, and what the terms say about your legal claim if the exchange fails. In most countries cryptoassets sit largely outside deposit-compensation schemes, so a bank-style safety net usually does not apply.
On security, prefer exchanges that require and support strong two-factor authentication, offer withdrawal allow-lists and address whitelisting, and have a documented incident history you can read. For larger holdings, many users keep only trading balances on an exchange and move the rest to self-custody. None of this removes risk — it manages it.
A pre-deposit checklist
Run these checks before you deposit any funds. If you cannot satisfy them, that is a signal in itself — a money decision you cannot verify is a money decision you should pause.
- Verify the exchange's authorisation on your national regulator's public register (ESMA/MiCA in the EU, FCA in the UK, ASIC in Australia, MAS in Singapore, VARA in Dubai).
- Confirm the exchange's own terms permit clients in your country for the products you want.
- Read the prescribed risk warning and any risk summary — not just the marketing.
- Check custody terms: are client funds segregated, and is there proof-of-reserves or audited disclosure?
- Enable strong two-factor authentication and withdrawal address whitelisting before funding the account.
- Ignore referral and sign-up bonuses as a safety signal; the UK FCA bans such incentives in crypto promotions.
- Never invest more than you can afford to lose — cryptoassets are highly volatile and often outside compensation-scheme protection.
Frequently asked questions
Does a big referral bonus mean an exchange is safe?
No. The size of a referral or sign-up bonus tells you nothing about an exchange's safety or regulatory standing. In the UK, the FCA prohibits referral and 'refer-a-friend' incentives in crypto promotions because they distort the decision. Judge an exchange on its verifiable licence status and custody terms, not its incentives. This is information, not financial advice.
How do I check if an exchange is legal in my country?
Check your national regulator's public register (for example ESMA/your national authority in the EU, the FCA in the UK, ASIC in Australia, MAS in Singapore, VARA in Dubai) for the exchange's legal entity, and read the exchange's own terms for the countries and products it serves. If you cannot confirm it is permitted to serve you, do not deposit. This is information, not financial advice.
Is it safer to keep crypto on an exchange or in self-custody?
Each carries different risks. An exchange is convenient but means trusting the exchange's solvency, security and custody arrangements; in most countries cryptoassets are largely outside deposit-compensation protection. Self-custody removes counterparty risk but puts loss-of-keys risk entirely on you. Many users keep only an active trading balance on an exchange. This is information, not financial advice.
Sources & further reading
An independent publisher mapping the regulation of cryptocurrency exchanges. Our editorial desk verifies every licence and availability claim against primary sources — the ESMA MiCA register, the FCA register, ASIC, MAS, VARA and each exchange's own terms — and never accepts payment for a better assessment or placement. We publish information only; nothing here is financial advice.