Coinbase secures FCA approval as a registered crypto service provider in the UK

Cryptocurrency exchange Coinbase has received approval from the UK’s Financial Conduct Authority (FCA) to offer its services after applying to become a virtual asset service provider (VASP).

The approval to operate in the UK has confirmed Coinbase’s status as the country’s biggest cryptocurrency exchange. The FCA approval gives the Nasdaq-listed firm authority to serve both retail and institutional clients. 

Coinbase could also offer crypto-to-fiat services in the progressive UK markets. The United Kingdom is the second largest Coinbase market, only trailing the United States, where it has its headquarters.

Coinbase approval process took less than a year

Coinbase has had a presence in the UK through subsidiary firms since 2018. CB Payments Limited has consistently provided money services in the UK over this period. However, it didn’t provide crypto service directly; it offered a freeway for users to trade crypto on entities within the Coinbase group.

The regulatory approval that allows the platform to operate as an exchange is significant. Importantly, the registration process happened faster after the FCA completed its investigation into Coinbase Payments for what the company described as “unintentional breaches” of a 2020 voluntary agreement. The platform was fined almost $4.3 million for bringing on some high-risk clients.

Coinbase is the first crypto asset company to be approved by the FCA to operate in the UK in 2025. Its approval follows that of trading firm GSR Markets, which was allowed to operate from December 2024. The FCA plans to generate a cryptocurrency framework that will attract most crypto players to the UK economy. 

UK’s population continues to adopt cryptocurrency, signaling a growing market

In 2024, the FCA surveyed cryptocurrency and discovered that digital asset adoption is on the rise. A year earlier, only 10% of adults held cryptocurrencies. Yet, the adoption rose to 12% in November 2024. Besides, the average holdings per investor also grew from $1,964 to $2,268.

Coinbase has been aggressively fulfilling its expansion strategies in Europe. Its latest entry in the UK comes after the company acquired approvals in Ireland and Germany. Besides, its Irish entity is registered as a crypto service provider in the Netherlands and Italy.

The crypto exchange platform still aspires to increase its presence across several continents. At the latest World Economic Forum in Davos, Coinbase leadership explored the possibilities of working in Southeast Asia. Its CEO, Brain Armstrong, discussed this with the Filipino finance secretary Ralph Recto. 

According to the Philippines Department of Finance, Coinbase initiated the meeting to find a smooth entry into the Southeast Asian nation, where the platform has been stepping up its engagement.

The crypto exchange has supported developer programs in the Philippines and Thailand to launch local stablecoins. Also, Coinbase released a report that highlighted citizens’ perceptions of cryptos in five countries, including the Philippines, on how crypto is critical to improving financial systems. The platform already operates in Singapore, having secured regulatory approval in October 2023.

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