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Coinbase Secures FCA Operational License in the UK

Previously, Coinbase offered e-money services in the UK through its subsidiary, CB Payments Ltd.

Coinbase exchange

America’s leading crypto exchange, Coinbase, has obtained an operational license from the Financial Conduct Authority (FCA) in the United Kingdom. The newly secured license allows UK residents to access the exchange’s crypto services while potentially boosting Coinbase’s user base.

Coinbase Brings Crypto to the UK

With the FCA’s approval, Coinbase can now offer regulated cryptocurrency services to customers in the UK, ensuring compliance with the country’s financial regulations. This development allows the exchange to provide various crypto-related products under regulatory supervision, including crypto trading and custody services.

This regulatory milestone is part of Coinbase’s ongoing efforts to boost its credibility and trustworthiness in the global market, especially as the regulations for digital assets continue to evolve.

Keith Grose, Coinbase UK CEO, highlighted the importance of this advancement, saying:

“It opens up new channels and opens up the ability to launch new products and services.”

Notably, this is not Coinbase’s first foray into the UK. Since 2018, the exchange has offered e-money services to UK customers through its subsidiary, CB Payments Ltd, in the heart of London. However, the unit did not facilitate crypto services. Instead, it served as a channel between UK users and crypto products within Coinbase’s ecosystem. The latest acquisition eliminates the need for an intermediary like the payment subsidiary.

Securing FCA approval to operate in the UK has been difficult, as only 14% of applicants receive a green light to offer crypto services to local investors. It remains to be seen how the FCA’s upcoming crypto rules will affect the nation’s regulatory landscape regarding cryptocurrencies.

Coinbase Expands Into Europe

In addition to securing its FCA operational license in the UK, Coinbase has expanded its reach into Europe. The exchange recently acquired BUX’s subsidiary in Cyprus, enabling it to offer crypto contracts for differences (CFDs) within the European Economic Area (EEA). With a Cyprus Investment Firm (CIF) license, Coinbase can now provide these services to EEA investors.

Furthermore, Coinbase has secured the EU’s Markets in Crypto Assets (MiCA) license and is taking steps to ensure compliance by removing stablecoins that do not meet MiCA requirements.

Mishael Nwani

Mishael Nwani is an avid crypto enthusiast with nearly four years of experience in the industry. Since 2022, he has covered topics across cryptocurrencies, NFTs, artificial intelligence, and financial markets.