What to know:
- By becoming a registered firm, Coinbase can offer both crypto and cash to investors and traders in the U.K.
- Landing on the FCA’s crypto register is challenging; only 14% of applicants have succeeded.
Crypto exchange Coinbase (COIN) has secured its position as the largest crypto exchange in the U.K. by registering with the Financial Conduct Authority (FCA), enabling it to provide crypto services for the first time in the country.
“It opens up new channels and opens up the ability to launch new products and services,” said Keith Grose, Coinbase’s CEO for the U.K.
Coinbase has been working towards this approval for the past six months. Now registered, the firm can offer a mix of crypto and cash services to U.K. investors and traders. Gaining a spot on the register is tough, with only 14% of applicants achieving success.
Previously, Coinbase operated in the U.K. through its subsidiary CB Payments Ltd., which has provided e-money services since 2018, without offering direct cryptocurrency services. This registration allows CBPL to provide both fiat and crypto services to its customers.
“Our new U.K. VASP registration will ensure that CBPL can continue to provide our customers with fiat services, and now with crypto services as well,” a Coinbase spokesperson stated.
With registration, Coinbase can directly communicate with the FCA about its plans, eliminating the need for a third-party approver, which was previously required.
“We’re excited to discuss areas like staking, the future of stablecoins in the U.K., and being registered as a virtual asset service provider is essential for us,” Grose remarked, hinting at the FCA’s upcoming crypto regulations.
