Coinbase Conquers UK, Trump-Backed Firm Deposits $300M

Coinbase, the leading cryptocurrency exchange, has seen mild gains in February 2023, aligning with the broader US stock market recovery. The company's expansion into the UK market, regulatory approvals, and strategic moves have contributed to its positive performance.

Coinbase's entry into the UK market is a significant milestone in its global expansion strategy. The exchange has secured approval from the UK's Financial Conduct Authority (FCA) to offer cryptocurrency services, including both crypto and fiat services. This move strengthens Coinbase's position in Europe and expands its user base beyond its historically US-focused customer base. The UK, with its established financial sector and growing interest in digital assets, is a critical region for Coinbase's global strategy.

The FCA has maintained strict oversight of digital asset firms in the UK, approving only 145 applicants under its registration framework. Coinbase's successful registration underscores its compliance with UK regulations and positions it as the largest registered digital asset provider in the region. The exchange's subsidiary, Coinbase Payments, has been operating in the UK since 2018, offering e-money services. However, until now, the company was restricted from providing crypto-related products. The latest approval follows an investigation into Coinbase Payments regarding "unintentional breaches" of a voluntary agreement it had entered into with UK regulators in 2020.

Coinbase's global expansion strategy has seen the exchange secure approval to launch crypto services in Argentina, in addition to its UK registration. The company has also reinstated Bitcoin-backed loans for US customers, signaling a renewed focus on product diversification. A company spokesperson emphasized the significance of the UK registration, stating, "This is a critical registration to cement our strong position in the UK and unlock our ambitious expansion plans." Coinbase continues to push forward with its mission of bringing one billion people into the crypto ecosystem.

In other news, World Liberty Financial (WLFI), backed by Donald Trump's son Eric, has moved major ETH and WBTC holdings to Coinbase. The move, worth over $300 million, has sparked criticism from the crypto community. WLFI defended the transaction, stating that it was "reallocating assets" for ordinary business purposes and not "selling" any tokens. However, the massive drop and deleveraging event over the weekend have led to a surge in put options (bets for downside