Coinbase has become the latest cryptocurrency exchange to secure registration with the UK's Financial Conduct Authority (FCA), allowing it to offer crypto services directly in the country.
History of Coinbase in the UK
Coinbase first entered the UK market in 2015, bringing its crypto wallet and exchange services to British customers. At that time, CEO Brian Armstrong described UK interest in cryptocurrencies as 'off the charts'.
New Permission and Its Significance
The new registration allows CB Payments Ltd., the UK unit of Coinbase, to offer cryptocurrency services directly. Previously, Coinbase could only serve as a gateway for trading through other entities. Now, it can provide both fiat and crypto services under its own structure.
Response to Regulatory Demands
In 2024, Coinbase faced scrutiny from the FCA for onboarding high-risk customers against previous restrictions. The exchange agreed to pay a fine of over £3.5 million and claims to have tightened compliance measures. The new registration enables Coinbase to directly communicate with the FCA and engage in regulatory discussions, including rules on staking and stablecoins.
Securing FCA registration opens new opportunities for Coinbase in the UK, allowing the company to strengthen its market presence and engage directly with regulatory bodies.
