Coinbase Triumphs in UK: Becomes Largest Crypto Exchange After FCA Approval

Coinbase, a leading cryptocurrency exchange, has secured a significant regulatory milestone in the United Kingdom (UK) by gaining approval from the Financial Conduct Authority (FCA) to operate as a Virtual Asset Service Provider (VASP). This approval positions Coinbase as the largest digital asset service provider in the region, surpassing competitors such as Binance.

Coinbase's UK CEO, Keith Grose, has expressed excitement about the approval, noting that the process has been ongoing for the past six months. The approval opens up new opportunities for the exchange to launch innovative products and services in the UK market. Historically, gaining 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 acted as a gateway for customers to buy or sell crypto assets within the Coinbase group. With the new approval, Coinbase can now offer a broader range of crypto and cash services to investors and traders in the UK.

Coinbase's new status as a VASP in the UK allows the exchange to communicate its plans directly with the FCA, rather than relying on third-party approvers. Grose has indicated that Coinbase is eager to engage with the regulatory authority on critical issues such as staking and the future of stablecoins in the UK, as the crypto regime in the country continues to evolve.

In recent news, Coinbase has made headlines for delisting Tether (USDT) in compliance with the new Markets in Crypto-Assets (MiCA) regulations. The delisting has had an impact on Tether's market capitalization, which has fallen from a high of $140.72 billion to $137.24 billion. Market observers have attributed this decline to the delisting of USDT from various European crypto exchanges.

While the delisting of USDT has raised concerns in the crypto space, analysts have dismissed fears that it could lead to reduced liquidity and access to stablecoins for traders in Europe. Coinbase's regulatory win in the UK, coupled with its commitment to engaging with regulators, signals a positive outlook for the exchange's future prospects in the region.