Coinbase stock gains as FCA approves UK crypto operations

On Monday, Coinbase (NASDAQ:COIN), a leading cryptocurrency exchange, marked a significant milestone by becoming the largest crypto exchange to be registered with the Financial Conduct Authority (FCA) in the United Kingdom (TADAWUL:4280). This approval allows Coinbase to offer crypto services in the country for the first time, expanding its operational reach.

Keith Grose, Coinbase’s U.K. CEO, highlighted the importance of this development in an interview, stating that the FCA registration "opens up new channels and opens up the ability to launch new products and services." The registration process was no small feat, as only 14% of applicants have successfully gained a spot on the FCA’s register.

According to CoinDesk, Coinbase has been working diligently over the past six months to secure Monday’s approval. With this new status, the exchange can now provide a broader range of services, including crypto and cash transactions for both investors and traders in the U.K.

Previously, Coinbase operated in the U.K. through its subsidiary CB Payments Ltd., which has been offering e-money services since 2018. However, this London-based unit did not directly offer cryptocurrency services but rather served as a conduit for customers to access crypto trading on other Coinbase group entities.

A Coinbase spokesperson explained the significance of the FCA registration, saying, "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." This development is expected to streamline Coinbase’s operations in the U.K. and enhance its service offerings.

Furthermore, with the FCA registration, Coinbase will have the ability to communicate directly with the regulatory authority regarding its communications and plans, a process that previously required a third-party approver.

Grose expressed enthusiasm for the future, particularly for discussing topics such as staking, the future of stablecoins in the U.K., and the implications of being a registered virtual asset service provider under the FCA’s upcoming crypto regime.

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