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How to choose a crypto exchange: licenses, custody, fees and security

How do you choose a crypto exchange? Start from what the law of your country requires, then check custody, costs and security. In practice that means confirming the platform's license in the official register of your regulator, reading how client assets are held and whether proof of reserves is published, calculating the total cost on a real amount, and checking that the exchange actually serves your country. No platform suits everyone: availability, products and rules change from country to country and over time.

Key takeaways

Why the choice of exchange matters

A centralized exchange does two jobs: it matches buyers and sellers, and it usually holds the crypto and cash of its clients. While your assets sit on the platform, you depend on how well it is run. The collapse of FTX showed the cost of getting this wrong: the exchange filed for bankruptcy in November 2022, and on 13 December 2022 the SEC charged its founder with diverting customer funds, according to the SEC press release of that date.

Choosing an exchange is therefore less about the number of coins listed and more about rules, custody and controls. The criteria below apply to any platform.

1. Licenses and registrations

In the European Union the Markets in Crypto-Assets Regulation (MiCA) requires every crypto-asset service provider (CASP) to hold an authorization from a national authority, which can then be passported to the other member states. The transitional period ended on 1 July 2026. ESMA publishes the register of authorized CASPs; an independent tracker counted 384 authorized providers in that register on 26 October 2026 (CASP Tracker).

In the United States there is no single federal crypto license. Exchanges register with FinCEN as money services businesses, obtain money transmitter licenses state by state, and in New York need a BitLicense or a trust charter from the New York State Department of Financial Services (NYDFS). Listed exchanges also publish audited accounts with the SEC.

Elsewhere, look for the local regulator: the FCA in the United Kingdom, VARA in Dubai, the MAS in Singapore, the FSA in Japan. In every case, search the company name in the official register and check that the legal entity serving you is the one that holds the license.

2. Custody and proof of reserves

Read the terms on how client assets are held: whether they are segregated from the company's own assets, what share sits in offline (cold) storage, and whether the platform lends or stakes client assets. Under MiCA, CASPs that hold client assets must keep them segregated and keep a register of client positions.

Several exchanges publish proof of reserves, including Kraken, Binance and OKX on their own pages (consulted on 27 October 2026). A good report shows both assets and client liabilities, lets each client verify that their balance is included, and is checked by an independent firm. It remains a picture at one date: it does not prove the absence of other debts.

3. Fees

4. Security

Look for two-factor authentication with an app or a hardware key rather than SMS, withdrawal address allowlists, delays on new withdrawal addresses, and clear rules on compensation after a hack. Incidents happen even at large platforms. On 21 February 2025 Bybit lost about 1.5 billion dollars in ether, which the FBI attributed to North Korean hackers in a public service announcement of 26 February 2025. On 14 May 2025 Coinbase told the SEC that support contractors had been bribed to leak customer data and estimated the cost at 180 to 400 million dollars; the filing said passwords and private keys were not exposed.

5. Support and country availability

Check how the platform can be reached (chat, phone, ticket), in which languages, and whether there is a formal complaints procedure. Then check your country: the same brand often operates through different legal entities, with different products, in each region. Some services, such as derivatives or staking, can be available in one country and not in another.

Overview of the main exchanges (status as of 27 October 2026)

The list below is neutral and in no particular order. It summarizes public information and is not a ranking. Status changes often, so verify each point in the official registers before opening an account.

Crypto and Unicorn Club

Many investors use an exchange to buy the stablecoins or the bitcoin and ether they then move elsewhere. Unicorn Club, the club for accredited investors organized by Unicorn Private LLC, accepts BTC, ETH, USDT and USDC (ERC-20) for its pre-IPO club deals; the guide on how to invest in pre-IPO companies with crypto explains the steps.

Frequently asked questions

Does a MiCA license remove the risks of an exchange?

No. MiCA sets rules on authorization, custody, conflicts of interest and disclosure, but it does not protect against the fall in the price of crypto-assets, and crypto holdings are not covered by deposit guarantee schemes.

How do I check whether an exchange is authorized in my country?

Search the company's legal name in the register of your regulator: the ESMA CASP register in the EU, the FCA register in the United Kingdom, the NYDFS list in New York, and the equivalent register elsewhere. Check that the entity named in your contract is the authorized one.

Should I keep my crypto on the exchange?

It depends on how you use it. Assets on an exchange depend on the platform's solvency and security; assets in your own wallet depend on how you protect your keys. The wallet guide explains the differences.

Related guide

Sources

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