"Coinbase Secures FCA Nod, Expands UK Crypto Services"

Coinbase, a leading US-based cryptocurrency exchange, has secured a significant regulatory milestone by gaining approval from the United Kingdom's Financial Conduct Authority (FCA) as a registered virtual asset service provider (VASP). This approval cements Coinbase's status as the largest FCA-registered crypto exchange in the UK and expands its ability to serve both retail and institutional customers in one of its most important international markets.

The FCA's approval, announced by Coinbase in a Feb. 3 press release, enables the Nasdaq-listed exchange to offer crypto-to-fiat services in the UK, which has rapidly grown into its largest market outside the United States. This latest development further solidifies Coinbase's presence in Europe and strengthens its foothold in one of the world's leading financial hubs.

The FCA's decision marks the first registration of a crypto asset firm in 2025, following GSR Markets' approval in December 2024. It also comes at a time when the UK is aggressively positioning itself as a global hub for digital assets, with plans to roll out a comprehensive regulatory framework by 2026.

The UK government, under Prime Minister Rishi Sunak, has been increasingly vocal about its commitment to fostering innovation in the blockchain and crypto industry. The FCA's approval of Coinbase signals a willingness to embrace digital assets, providing regulatory clarity that could further boost institutional participation in the sector.

A recent FCA survey conducted in November 2024 found that 12% of UK adults now own cryptocurrencies, a notable increase from 10% in the previous year. Additionally, the average investment per individual rose from £1,595 ($1,964) to £1,842 ($2,268), indicating growing confidence in digital assets among retail investors.

Coinbase's regulatory success in the UK follows a challenging period with the FCA, which had previously investigated Coinbase Payments for compliance breaches. The exchange faced scrutiny over unintentional violations of a 2020 voluntary agreement, primarily linked to onboarding high-risk customers. This led to a £3.5 million ($4.3 million) fine, but the firm has since taken corrective measures, strengthening its compliance framework and improving risk management protocols.

Beyond the UK, Coinbase has been actively