Crypto exchange Coinbase (COIN) became the largest crypto exchange to operate in the U.K. after securing a spot on the register of the Financial Conduct Authority (FCA), allowing it to offer crypto services in the country for the first time.
“It opens up new channels and opens up the ability to launch new products and services,” Keith Grose, Coinbase’s U.K. CEO, said in an interview.
Coinbase has spent the last six months working towards Monday’s approval, said Grose. By becoming a registered firm, Coinbase can offer both crypto and cash for investors and traders in the U.K.
Gaining a spot on the register is challenging, just 14% of applicants have succeeded.
Coinbase already had a presence in the U.K. through its CB Payments Ltd. subsidiary, which has provided e-money services since 2018. The London-based unit did not offer cryptocurrency services directly, but acted as a gateway for customers to trade crypto on entities within the Coinbase group.
“Our new U.K. VASP registration will mean that CBPL can not only continue to provide our customers with fiat services, but now can also provide crypto services,” a Coinbase spokesperson said.
Coinbase will also now be able to talk to the FCA directly about its communications and plans without relying on a third-party approver as it was necessary beforehand.
“We’re excited to talk about things like staking, the future of stablecoins in the U.K., and being [virtual asset service provider] registered is part of that for us,” Grose said alluding to the FCA’s incoming crypto regime.