Coinbase Now Offers Regulated Crypto Services to Users Across the UK

Finally, Coinbase has secured its Virtual Asset Service Provider (VASP) registration from the Financial Conduct Authority (FCA), making it the largest regulated crypto exchange in the United Kingdom.

According to the crypto exchange, this registration allows it to expand its services and offer cryptocurrency and fiat trading to institutional and retail clients in the country.

This marks a significant milestone for Coinbase, which has been working toward this registration for the past six months. While it has had an active presence in the UK since 2018, through its subsidiary, Coinbase Payments, it could only offer e-money services to users before now.

However, after securing the FCA's authorization, it can now offer crypto, alongside other products, to users across the country.

An Important Market Expansion

Coinbase views the UK as its largest international market and a key player in its global expansion efforts.

“This is a critical registration to cement our strong position in the UK and unlock our ambitious expansion plans,” the exchange said in a blog post. It added that it aims to onboard one billion people into crypto while prioritizing security and regulatory compliance.

Coinbase has now joined a growing list of crypto exchanges to meet the FCA’s strict regulatory requirement to offer crypto services in the UK. 

Since January 2020, the FCA has mandated that any firm offering crypto services comply with the amended anti-money laundering (AML) and counter-terrorist financing (CTF) regulations 2017 (MLRs). Only 14% of applicants have been able to meet the FCA’s requirements and secure registration.

Incoming Crypto Regime

Meanwhile, the latest development comes as the FCA is working to implement a new crypto regime for the sector amid growing adoption for the asset class in the UK.  The FCA's roadmap includes publishing discussion and consultation papers on several aspects, such as market abuse, disclosures, stablecoins, trading platforms, and custody, with final policy statements expected in 2026.

The initiative aims to address the growing crypto adoption in the country while managing associated risks. 

A report published by the FCA in November 2024 found that 7 million UK adults own crypto, representing 12% of the nation's adult population and up 10% from 2022. According to the report, the average value of the digital asset held by this adult population rose to £1,842 ($2319.55) as of August 2024 from £1,595 ($2008.85) in August 2023.