Renowned cryptocurrency exchange Coinbase has bagged a regulatory license from the U.K. Financial Conduct Authority (FCA) to offer financial services in the country.
Coinbase Enters U.K.
The latest approval, effective February 3, 2025, will afford the crypto exchange the right circumstances to launch new products and services for crypto and cash investors and traders.
Landing a spot with FCA has been challenging. Records reveal that only 14% of applicants have successfully received a license to operate from the regulatory body. Hence, Coinbase’s latest development is a remarkable milestone.
Commenting on the matter, a spokesperson for Coinbase stated:
“Our new U.K. VASP registration will mean that CBPL CB Payment Limited can not only continue to provide our customers with fiat services but can now also provide crypto services.”
Since 2018, Coinbase has been present in the U.K. through its subsidiary, CB Payments Limited. This subsidiary operates a globally accessible crypto trading platform. The firm does not facilitate customers’ crypto transactions. Instead, it serves as an intermediary that enables customers to trade digital assets through other entities within the Coinbase Group.
Recall that in July 2024, the Financial Conduct Authority fined Coinbase’s payment arm CBPL $4.5 million for serving crypto traders and investors, who, according to the regulatory body, are high-risk customers because it was not registered to conduct cryptocurrency activities in the U.K.
Over the years, Coinbase has not enjoyed an open communication system with the FCA. The crypto firm has relied on a third party to gain an audience with the U.K. regulator. Going forward, the crypto exchange can now talk to the FCA directly.
The American crypto exchange’s move aligns with its “Go Broad & Go Deep” Strategy, which aims to expand Coinbase’s international business reach.
Alluding to FCA’s upcoming crypto regime to come in 2026 that will implement a comprehensive regulatory framework for cryptocurrencies in the U.K., Keith Grose, CEO at Coinbase U.K., said:
“We are excited to talk about things like staking, the future of Stablecoins in the U.K., and being a Virtual Asset Service Provider.”
