Coinbase has been approved by the United Kingdom’s Financial Conduct Authority (FCA) to provide cryptocurrency services across the nation, according to an update to the regulator’s registered crypto asset businesses list.
This approval allows Coinbase to provide services like crypto trading and custody for both individual and institutional investors. It makes Coinbase the largest registered digital asset provider in the UK.
To comply with UK anti-money laundering regulations, cryptocurrency companies must register with the FCA. CBPL has been an approved e-money institution since 2018 but has previously experienced regulatory difficulties.
It committed to further supervision in 2020 as a result of deficiencies in financial crime measures. However, it later disregarded these limits by supplying about 13,000 high-risk customers, incurring a £3.5 million penalty last year.
Coinbase received clearance after meeting the FCA’s regulatory standards. Cryptocurrencies have previously failed to obtain institutional backing due to their price volatility, but this clearance may assist in enhancing crypto’s accessibility and reputation in the UK financial system.
Keith Grose, CEO of Coinbase UK, said, “This is a critical registration to cement our strong position in the UK and unlock our ambitious expansion plans.” Their mission is to bring more people into crypto while focusing on security and compliance. He also believes that more widespread use of crypto can increase economic freedom.
Daniel Seifert, EMEA Vice President, mentioned that this technology will bring great benefits, creating jobs, growth, and investment across the UK. At Coinbase, we are excited to be part of the UK’s journey and the amazing opportunities this new era of tech growth brings.
He added, “We’re already seeing groundbreaking technologies such as stablecoins being used by traditional financial players to revolutionize payments. This is possible thanks to the welcoming environment for the web3 and crypto asset industry created by the UK government.”
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