Coinbase, a leading cryptocurrency exchange, has secured registration with the UK’s Financial Conduct Authority (FCA). This approval allows Coinbase to directly offer crypto services in the UK, marking a key step in its expansion within a regulated financial market.
What This Means for Coinbase and UK Crypto Users
With FCA registration, Coinbase’s UK subsidiary, CB Payments Ltd., can now provide both fiat and crypto services. Previously, CB Payments Ltd. operated only as an e-money service provider. It served as a gateway for UK customers to trade digital assets through other Coinbase entities. However, with this new approval, it can now offer crypto services directly, significantly strengthening its role in the UK’s crypto space.
Moreover, Keith Grose, Coinbase’s UK CEO, highlighted the importance of this regulatory milestone:
“It opens up new channels and the ability to launch new products and services.”
As a result, this approval makes Coinbase the largest FCA-regulated crypto exchange in the UK, reinforcing its focus on compliance and consumer protection.
Challenges in Securing FCA Approval
Becoming an FCA-registered crypto firm is difficult. In fact, the approval process is rigorous, with only 14% of applicants succeeding. Consequently, Coinbase spent six months meeting FCA’s strict compliance standards.
Furthermore, with registration, Coinbase can now communicate directly with the FCA. Previously, it had to rely on third-party intermediaries. This change not only allows Coinbase to help shape UK cryptocurrency regulations but also contributes to discussions on staking and stablecoins.
Regulatory Challenges and Compliance Efforts
Coinbase’s path to FCA approval was not easy. In July 2024, the FCA investigated the company for onboarding high-risk customers. As a result, the exchange violated compliance restrictions, leading to a £3.5 million fine. However, Coinbase has since strengthened compliance measures, which ultimately led to this successful registration.
Coinbase Growing UK Presence
Coinbase has operated in the UK since 2015, when it introduced its crypto wallet and exchange services. At the time, CEO Brian Armstrong described UK interest in crypto as “off the charts.”
Since then, the latest FCA approval confirms Coinbase’s long-term commitment to the UK. Notably, it aims to create a compliant and secure environment for crypto trading. This regulatory win, therefore, strengthens its position as a trusted platform for UK investors and traders.