Coinbase Secures FCA Approval, Boosts UK Crypto Expansion

Coinbase, a leading cryptocurrency exchange, has secured approval from the UK's Financial Conduct Authority (FCA) to operate as a registered crypto provider. This approval allows Coinbase to work as a Virtual Asset Service Provider, offering clients a range of crypto and fiat services. As a result, Coinbase becomes the largest FCA-regulated crypto platform in the United Kingdom, demonstrating its commitment to regulatory compliance.

The FCA approval enables direct communication with the regulator, eliminating previous hurdles and paving the way for more effective expansion of Coinbase's services in the UK. This is a significant achievement for Coinbase, which has operated in the UK through its subsidiary, CB Payments Ltd, since 2018. The UK has seen a surge in cryptocurrency ownership, with 12% of its adults now owning a digital asset.

With this approval, Coinbase plans to extend its range of crypto services in the UK, including staking and stablecoins, while adhering to local regulations. This move aligns with the UK government's pro-crypto stance, which aims to increase general adoption of cryptocurrencies and provide investor protection. The FCA registration reflects the growing demand for regulated crypto services in the UK and Europe, where the crypto user base has reached 65 million. This approval not only improves Coinbase's market positioning in the UK but also brings legal clarity, facilitating smoother mainstream adoption of crypto assets.

Coinbase's expansion extends beyond the UK, with the company securing regulatory permits in Ireland, Germany, the Netherlands, and Italy. Coinbase has also explored opportunities in Southeast Asia, recently meeting with finance ministry officials in the Philippines to discuss entering the market. The company has already supported local blockchain initiatives in the Philippines and Thailand and has an existing presence in Singapore, where it obtained a regulatory license in 2023.

Following the FCA approval, Coinbase plans to expand its services for both institutional investors and retail customers in the United Kingdom. Additionally, Coinbase's Derivatives division will launch new futures contracts for Solana (SOL) and Hedera (HBAR) on February 18, 2025.