Coinbase Gains FCA Approval, Becomes Largest Regulated Crypto Exchange in the UK

• Coinbase gets FCA approval and can now offer crypto and fiat services in the UK under strict regulations.
• The approval lets Coinbase expand services in the UK including trading staking and stablecoin transactions.
• UK crypto adoption is rising with 12% of adults holding digital assets as Coinbase strengthens its market presence.

Coinbase has been approved by the UK’s Financial Conduct Authority (FCA) as Virtual Asset Service Provider (VASP). This license allows the exchange to provide cryptocurrency and fiat services in the UK. Coinbase became the largest regulated cryptocurrency exchange in the country with this approval.

The regulations are very strict and only 14% of applicants are approved. After undergoing a six month application process, Coinbase met all compliance requirements. The approval shows the exchange can meet the regulator’s high standards.

Coinbase Strengthens Its UK Operations

Before this approval, the company operated in the UK through its subsidiary CB Payments Ltd. The subsidiary provided e-money services since 2018 but did not deal with cryptocurrencies. The new registration allows Coinbase to offer digital assets alongside its existing financial services.

Additionally, the approval also broadens the scope of the services made available to UK users. Customers can trade cryptocurrencies, stake assets, and use stablecoins. It aims to eliminate intermediaries and engage directly with regulators.

Institutional Investors Gain Market Access

The UK remains a key market for the company. This approval aligns with its growth strategy and expands access for both retail and institutional investors. FCA regulations ensure enhanced security and compliance for all users.

Institutional investors require regulatory certainty before entering the market. With FCA approval, it strengthens its position as a trusted exchange for large investors. This development supports the continued growth of digital assets in the UK.

Crypto Adoption in the UK Grows

Cryptocurrency ownership in the UK continues to rise. Reports show that 12% of UK adults, or 8.8 million people, hold digital assets. This figure has increased from 10% in previous years. Across Europe, the crypto user base has reached 65 million.

The UK government supports innovation in the financial sector. FCA regulations promote cryptocurrency adoption while maintaining oversight. The company is now positioned to contribute to future policy discussions.

Coinbase recently secured a license in Argentina. The National Securities Commission approved its operation as a Virtual Asset Service Provider. This expansion strengthens its position in international markets.