Coinbase has been approved to operate as a regulatory crypto exchange in the UK. The country’s Financial Conduct Authority (FCA) has granted the company a license to the Virtual Asset Service Provider (VASP). The U.S.-based exchange announced the development on Monday, noting that it could offer other services in the UK. As the country strengthens its efforts to complete legislation to oversee the cryptocurrency sector, these companies appear to see the UK as a lucrative place to expand crypto services.
Coinbase said the license will now allow it to provide a “better” suite of crypto products and services to retail and institutional investors in the UK. The exchange said it could now use the Fiat-to-Creputo service offering as part of its business expansion.
With the VASP license, Coinbase claims it has become the largest player in the UK’s digital assets space.
“The UK is our largest international market and this registration represents an important chapter in our international expansion strategy,” Crypto said on X (formerly Twitter).
Coinbase is now the largest VASP in the UK. :GB:
The UK is our largest international market and this registration represents an important chapter in our international expansion strategy. pic.twitter.com/qdjp4xctwb
– Coinbase: Shield: (@coinbase) February 3, 2025
Singapore, Bermuda and France are other regions where the exchange has managed to obtain official licenses and approvals over the past two years.
UK financial regulators have officially added Coinbase to their list of “Previously Registered Crypto Asset Companies” with the name “CB Payments Ltd”. The website also shows that Coinbase’s UK office is registered in London.
“The company has been shown on the register because it has been approved by the FCA (or the relevant regulatory authority). As a result, you may be able to complain to the company to the Financial Ombudsman Service,” the FCA’s website for Registered Encryption Company said.
The FCA also communicates that if these licensed companies go bankrupt due to providing funds to users, these users will not be able to claim compensation from the Financial Services Compensation Program (FSC). Authorities warn that if problems arise, any crypto asset service provided by the company is unlikely to be protected.
For all crypto companies listed in the FCA, the agency also provides information about these companies’ “clone” to enable member notifications of members of the crypto community.
Last September, the FCA said that by then, 90% of crypto companies HAT had applied for UK registration because these companies did not show proper security measures.
In June 2023, UK regulators formulated several rules for crypto companies to comply with. This includes canceling the “recommended friends” bonus for crypto buyers and asking VASP to issue a risk warning to their products.
According to a recent report, UK regulators are planning to complete the country’s crypto legislation by 2026.
