Coinbase Secures FCA Approval to Operate in the U.K.
Crypto exchange Coinbase (COIN) has made a significant stride in the cryptocurrency landscape by becoming the largest exchange to operate in the U.K., following its successful registration with the Financial Conduct Authority (FCA). This pivotal milestone allows Coinbase to offer cryptocurrency services in the country for the very first time.
“This opens up new channels and enhances our ability to launch innovative products and services,” stated Keith Grose, Coinbase’s U.K. CEO, during an interview. The approval is expected to pave the way for a broader range of offerings tailored to meet the needs of U.K. investors.
Over the past six months, Coinbase has diligently worked towards obtaining this crucial approval. By achieving registered firm status, the exchange can now provide both cryptocurrency and traditional cash services to investors and traders in the U.K. This accomplishment is particularly notable considering that only 14% of applicants are successful in securing a spot on the FCA’s register.
Prior to this, Coinbase had already established a presence in the U.K. through its subsidiary, CB Payments Ltd., which has been delivering e-money services since 2018. While this London-based unit did not directly offer cryptocurrency services, it acted as a crucial gateway for customers to engage in crypto trading within the broader Coinbase ecosystem.
“With our new U.K. Virtual Asset Service Provider (VASP) registration, CBPL can not only continue providing our customers with fiat services but can also now offer comprehensive cryptocurrency services,” a spokesperson for Coinbase remarked.
Additionally, this registration allows Coinbase to engage directly with the FCA regarding its communications and future plans, eliminating the need for third-party intermediaries, which was previously mandatory. “We are eager to discuss topics such as staking and the evolving landscape of stablecoins in the U.K. Being recognized as a registered VASP is a significant part of that journey for us,” Grose added, hinting at the FCA’s forthcoming regulatory framework for cryptocurrencies.
