As an official Virtual Asset Service Provider in a financial hub as crucial as the United Kingdom, Coinbase strengthens its global presence, reinforcing its position as one of the world’s leading cryptocurrency exchanges.
Expansion into a Key Market
Coinbase has received regulatory approval to offer cryptocurrency services in the United Kingdom, marking a significant step in its international expansion. The exchange announced that it has obtained Virtual Asset Service Provider (VASP) registration from the UK’s Financial Conduct Authority (FCA). This approval allows Coinbase to provide both crypto and fiat services in the UK, one of its largest international markets.
The UK is a critical region for Coinbase’s global strategy, given its established financial sector and growing interest in digital assets. By securing this registration, Coinbase strengthens its position in Europe and expands beyond its historically US-focused user base. The move aligns with the company’s broader goal of increasing global adoption of cryptocurrencies.
Navigating Regulatory Challenges
The FCA has maintained strict oversight of digital asset firms in the UK, approving only 145 applicants under its registration framework. Coinbase’s successful registration underscores its compliance with UK regulations and positions it as the largest registered digital asset provider in the region.
Coinbase Payments, a subsidiary of the exchange, has been operating in the UK since 2018, offering e-money services. However, until now, the company was restricted from providing crypto-related products. The latest approval follows an investigation into Coinbase Payments regarding “unintentional breaches” of a voluntary agreement it had entered into with UK regulators in 2020.
By securing VASP registration, Coinbase can now legally facilitate cryptocurrency transactions for both retail and institutional clients in the UK. This milestone not only strengthens its presence in the country but also signals a growing acceptance of crypto firms within the UK’s regulatory framework.
A Global Expansion Strategy
Coinbase has been actively expanding its operations worldwide, with the UK approval being the latest in a series of regulatory milestones. Just weeks ago, the exchange secured approval to launch crypto services in Argentina. Additionally, Coinbase recently reinstated Bitcoin-backed loans for US customers, signaling a renewed focus on product diversification.
A company spokesperson emphasized the significance of the UK registration, stating,
“This is a critical registration to cement our strong position in the UK and unlock our ambitious expansion plans.”
The exchange continues to push forward with its mission of bringing one billion people into the crypto ecosystem.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
