Coinbase Secures FCA Approval, Expands UK Crypto Services

Coinbase, a leading cryptocurrency exchange, has secured a significant regulatory milestone by gaining approval from the UK's Financial Conduct Authority (FCA) to operate as a Virtual Asset Service Provider (VASP). This approval allows Coinbase to offer a broader range of crypto services to both retail and institutional clients in the UK.

Coinbase's UK CEO, Keith Grose, expressed his excitement about the approval, noting that the process had been ongoing for six months. He highlighted that this achievement opens up new opportunities for the exchange to launch innovative products and services in the UK market. Historically, obtaining approval from the FCA has been a challenging process, with less than 15% of applicants successfully securing a spot on the register.

Previously, Coinbase had a limited presence in the UK through its CB Payments entity, which only offered e-money services and facilitated access to crypto trading within the Coinbase group. With the new approval, Coinbase can now directly provide crypto and cash services to UK investors and traders.

Coinbase's inclusion on the FCA register also enables the exchange to engage directly with the regulatory authority on critical issues, such as staking and the future of stablecoins in the UK. This direct communication will allow Coinbase to better navigate the evolving crypto regulatory landscape in the UK.

In recent news, Coinbase made headlines for delisting Tether (USDT) in compliance with the new Markets in Crypto-Assets (MiCA) regulations. The delisting, which came into full effect on December 30, 2024, has raised concerns about reduced liquidity and access to stablecoins for European traders. However, market analysts have dismissed these fears, suggesting that the impact on the broader crypto space will be minimal.