Key Takeaways
- Coinbase received FCA approval to offer direct crypto services in the UK.
- The registration positions Coinbase as the largest digital assets player in the UK market.
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The UK’s Financial Conduct Authority (FCA) has greenlit CB Payments Ltd. (CBPL), Coinbase’s UK-based subsidiary, to offer crypto services directly in the country, according to an update on the regulator’s registered crypto asset firms list.
The newly granted FCA registration allows Coinbase to provide services directly to UK customers without intermediaries. Companies offering crypto services in the UK must register with the FCA under the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017 to ensure anti-money laundering compliance.
CBPL, which has held e-money institution authorization since 2018, previously faced regulatory scrutiny. In 2020, the unit entered into a Voluntary Requirement with the FCA to address financial crime control weaknesses.
The company later breached these restrictions by servicing approximately 13,000 high-risk customers, resulting in a £3.5 million fine from the FCA last July, FinTech Futures reported.
Coinbase celebrated the new milestone in a Monday blog post. The company said the Virtual Asset Service Provider (VASP) registration positions it as the largest registered digital assets player in the UK market, which the company describes as its biggest international market.
“This is a critical registration to cement our strong position in the UK and unlock our ambitious expansion plans,” Coinbase stated. “Our mission is to onboard the next 1 billion people into crypto while prioritizing security for customer assets and maintaining the highest standards of compliance.”
The approval enables Coinbase to offer both crypto and fiat services in the UK. The company has indicated it will continue working with policymakers to promote innovation while maintaining regulatory compliance.
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