Coinbase Secures UK License, Boosting Crypto Adoption; Uphold Resumes Staking Services

Coinbase, a leading cryptocurrency exchange, has been granted a license by the UK's Financial Conduct Authority (FCA), making it the largest licensed cryptocurrency exchange in the country. This significant development allows Coinbase to expand its services in the UK, offering a broader range of crypto and fiat services, including trading, custody, and on/off ramps.

After six months of preparation, Coinbase can now directly communicate with the FCA, streamlining future approvals. This regulatory milestone strengthens Coinbase's position in the UK market and could boost cryptocurrency adoption, encouraging other exchanges to follow suit.

In related news, Uphold, a cryptocurrency trading platform, has resumed its staking services in the UK following a change in local regulations. The UK Treasury recently amended the Financial Services and Markets Act 2000 (FSMA), clarifying that arrangements for qualifying crypto asset staking are not considered collective investment schemes. This amendment, effective from January 31, has allowed platforms like Uphold to reintroduce staking services to their UK customers.

Staking, a process that enables cryptocurrency holders to earn rewards for participating in network operations, is considered a crucial activity in many blockchain networks. The UK Treasury's decision to exclude crypto staking from collective investment schemes has been welcomed by the industry, providing regulatory clarity for service providers.

While staking services have resumed in the UK, Uphold notes that staking is still not available in several other regions, including the United States, Canada, Europe, Japan, Venezuela, Singapore, and other jurisdictions where Uphold's services are generally not offered. Uphold CEO Simon McLoughlin expressed optimism about the future of staking services, indicating plans to expand these services to Europe and the US by June 2025. He also highlighted the potential for further regulatory progress in the US, citing a crypto-friendly administration and the possibility of significant advancements in the year 2025.