Coinbase secures FCA approval to become the largest registered crypto firm in the UK.
This approval is a major boost to its growth and expansion plans.
Coinbase has become the latest major crypto exchange to bag a virtual asset service provider (VASP) license from the UK Financial Conduct Authority (FCA). With this license, now has the authority to offer full crypto services within the country. These services (in cash and crypto) will be to both its retail and institutional clients, as Coinbase brings its offerings to a region that is arguably one of the most crucial international markets it can hope to conquer.
Furthermore, the new license also means that the Nasdaq-listed exchange is now the UK’s biggest crypto firm to have registered with the regulatory body.
Coinbase UK Activates Growth Plans after Securing VASP License
According to the exchange, securing this was not a small feat. It took the exchange working tirelessly over the last six months. To paint a clearer picture of how challenging it is to gain favor in the sight of the FCA, Coinbase UK CEO Keith Grose says only 14% of applicants have so far been successful in their bid to get the approval.
Be that as it may, the company has hinted that it might be set to take immediate advantage of this new development. Grose said about the approval:
“It opens up new channels and opens up the ability to launch new products and services.”
“It opens up new channels and opens up the ability to launch new products and services.”
Meanwhile, Coinbase is not exactly new to the UK terrain. Its CB Payments Ltd. subsidiary has been providing e-money services in the region since 2018. However, the unit did not offer direct crypto services.
All that is about to change, though. According to a company spokesperson, the new UK VASP registration means that CBPL does not even need to act as a gateway for customers to trade crypto anymore. Now, it can provide full crypto services on its own.
Expansion and Future Plans
Noticeably, Coinbase has been intensifying its expansion efforts across various regions around the world. This is especially true for Europe, where it already bagged licenses in Germany, Ireland, and now the United Kingdom. Although it also operates as a crypto service provider in the Netherlands and Italy, Coinbase has also shown intent to spread its tentacles toward Southeast Asia, with the Philippines being its most recent location of interest.
With one eye on its global expansion efforts, Coinbase will now be keen to maximize its recent registration approval with the FCA. This means talking directly with the regulator without the need for any third-party approver, as was the case before now.
Speaking about the company’s next discussions with the FCA, Grose has revealed that those might border on staking and the future of stablecoins.