Coinbase Joins UK FCA Crypto Register

Coinbase cryptocurrency exchange has become the largest operating company in the United Kingdom (U.K) after gaining approval from the authorities. Coinbase secured a spot on the Financial Conduct Authority (FCA) register, which permits Coinbase to offer crypto services in the U.K.

Coinbase’s Regulatory Win and Future Prospects

Keith Grose, Coinbase’s U.K. CEO, explained that the process has been ongoing for the past six months. Grose noted that the approval opens opportunities for the exchange to launch new products and services in the U.K.

Going forward, Coinbase can offer crypto and cash services to investors and traders in the U.K. Market experts have lauded the move, noting that getting approval into the FCA register is not a small feat. Historically, only less than 15% of applicants have been successful.

Although Coinbase had a presence in the U.K. via its CB Payments, its services were limited and did not include crypto services directly. The CB Payments only provided e-money services and acted as access for customers to buy or sell crypto entities within the Coinbase group.

Coinbase Set to Discuss MiCA Compliance with FCA

Interestingly, with Coinbase now on the FCA register, the exchange can communicate its plans directly. It will no longer rely on third-party approvers to sanction it.

Grose said with the pending crypto regime in the U.K., Coinbase would like to engage with the regulatory authority on some issues. These include staking and the future of stablecoins in the U.K., among other critical issues.

Coinbase exchange made news recently following its delisting of Tether (USDT) in compliance with the new Markets in Crypto-Assets (MiCA) regulations. The MiCA regulations came into full effect on December 30, 2024.

Impact of Tether’s Delisting

As reported by Coinrise, Tether’s market capitalization recently took a hit as it fell from a high of $140.72 billion to $137.24 billion. Many market observers attributed the sharp decline to the delisting of USDT from many European crypto exchanges.

The delisting of USDT in compliance with the MiCA regulations has raised broader concerns in the crypto space. Analysts have ,however, dismissed fears that it could lead to reduced liquidity and access to stablecoin for traders in Europe.