Coinbase Secures FCA Approval, Expands UK Crypto Services

Coinbase, a leading cryptocurrency exchange, has received approval from the UK's Financial Conduct Authority (FCA) to offer direct crypto services in the country. The registration of Coinbase's UK-based subsidiary, CB Payments Ltd. (CBPL), allows the company to provide services directly to UK customers without intermediaries.

The FCA registration is a significant milestone for Coinbase, as it positions the company as the largest registered digital assets player in the UK market. The UK is Coinbase's biggest international market, and the new registration will enable the company to expand its services and reach a larger customer base.

CBPL has held e-money institution authorization since 2018, but the company faced regulatory scrutiny in the past. In 2020, CBPL entered into a Voluntary Requirement with the FCA to address financial crime control weaknesses. However, the company later breached these restrictions by servicing approximately 13,000 high-risk customers, resulting in a £3.5 million fine from the FCA last July.

Coinbase celebrated the new milestone in a blog post, stating that the Virtual Asset Service Provider (VASP) registration will help the company achieve its mission of onboarding the next 1 billion people into crypto while prioritizing security for customer assets and maintaining the highest standards of compliance.

The approval enables Coinbase to offer both crypto and fiat services in the UK. The company has indicated that it will continue working with policymakers to promote innovation while maintaining regulatory compliance.