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Coinbase (COIN) is now the biggest cryptocurrency exchange permitted to operate in the United Kingdom after formally securing its spot on the Financial Conduct Authority’s (FCA) register. Coinbase can now directly offer cryptocurrency services thanks to this clearance, increasing its presence in a significant financial market.
Keith Grose, Coinbase’s U.K. CEO, emphasized the significance of this achievement. “It opens up new channels and opens up the ability to launch new products and services,” he said.
Over the past six months, Coinbase worked diligently to secure this regulatory approval. The process is rigorous, with only 14% of applicants successfully gaining a spot on the register.
Coinbase has been active in the U.K. through its CB Payments Ltd. (CBPL) subsidiary, which has provided e-money services since 2018. However, until now, CBPL did not directly offer cryptocurrency services, instead serving as a bridge for customers to trade digital assets through Coinbase’s wider network.
With the new FCA registration, CBPL can now provide both fiat and crypto services, further integrating its offerings. A Coinbase spokesperson confirmed, “Our new U.K. VASP registration will mean that CBPL can not only continue to provide our customers with fiat services, but now can also provide crypto services.”
Additionally, the registration eliminates Coinbase’s previous reliance on third-party approval for regulatory communications. The exchange can now engage directly with the FCA regarding its future plans and new product launches.
Coinbase’s FCA approval comes at a pivotal time, as the U.K. moves towards a clearer regulatory framework for digital assets. Grose highlighted Coinbase’s enthusiasm for upcoming discussions, stating, “We’re excited to talk about things like staking, the future of stablecoins in the U.K., and being [virtual asset service provider] registered is part of that for us.”
This milestone strengthens Coinbase’s position in the European market and aligns with its long-term strategy of working closely with regulators to expand crypto adoption.