Coinbase in the UK has received approval from the Financial Conduct Authority (FCA) to provide digital asset services, marking a significant expansion of the U.S.-based exchange in Europe.
The approval allows Coinbase in the UK to offer a range of cryptocurrency services, including trading and custody, to both retail and institutional investors.
The FCA’s stringent registration process has resulted in only 145 successful applicants, with Coinbase becoming the largest registered digital asset provider in the country. This milestone highlights the company's adherence to the UK's regulatory standards and further solidifies its position in the region's growing cryptocurrency market.
The news comes after Coinbase’s subsidiary, Coinbase Payments, has been operating in the UK since 2018, offering e-money services. However, until now, the company was limited in offering crypto-related products. The latest registration follows an investigation into Coinbase Payments regarding the "unintentional assessment" of a voluntary agreement with UK regulators in 2020.
Cryptocurrency services have previously faced challenges in gaining institutional approval due to the volatility of digital assets. However, Coinbase in the UK could signal a shift in the accessibility and acceptance of cryptocurrency services within the UK's financial ecosystem.