Coinbase Secures Major Crypto License in the UK

By: Eliza Bennet

Coinbase, one of the leading cryptocurrency exchanges globally, has achieved a significant regulatory milestone by securing the Virtual Asset Service Provider (VASP) registration in the United Kingdom. This achievement, announced by Coinbase’s Chief Policy Officer, Faryar Shirzad, positions Coinbase as the largest registered VASP in the UK, marking an important step in its European expansion strategy.

The registration process was completed amidst tightening regulations by the Financial Conduct Authority (FCA) in the UK, which has been known for rejecting a considerable number of crypto-related registration applications over the past year. This approval now means the total number of approved crypto platforms in the UK is around 50, demonstrating Coinbase's ability to meet stringent regulatory requirements.

This achievement also follows the company's efforts to comply with updated Money Laundering Regulations, namely the Money Laundering, Terrorist Financing, and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs), essential for operating within the UK's regulated crypto sector. With its new license, Coinbase can now facilitate cryptocurrency and fiat transactions for UK customers, although it remains restricted from converting cryptocurrencies to cash and vice versa through automated systems.

The UK registration is a significant stride in Coinbase's international expansion agenda, occurring just days after obtaining a similar registration from Argentina's National Securities Commission (CNV). These developments highlight Coinbase's commitment to collaborating with regulators worldwide to foster greater economic freedom and drive a pro-tech and innovation agenda. The company continues to emphasize its mission to onboard the next billion users into the cryptocurrency ecosystem, focusing on asset security and maintaining high compliance standards.