Coinbase Becomes the Largest Crypto Exchange to Operate in the U.K.

Crypto exchange Coinbase (COIN) became the largest crypto exchange to operate in the U.K. after securing a spot on the register of the Financial Conduct Authority (FCA)

Coinbase (COIN) has become the largest crypto exchange to be directly authorized by the U.K. Financial Conduct Authority (FCA) to operate in the country.

Coinbase is now able to offer crypto services in the U.K. after being included in the FCA's register of cryptoasset businesses.

"It opens up new channels and opens up the ability to launch new products and services," Coinbase's U.K. CEO Keith Grose told CoinDesk in an interview.

Coinbase has been working towards Monday's approval for the past six months, Grose said. By becoming a registered firm, Coinbase can offer both crypto and cash services to investors and traders in the U.K.

Gaining a spot on the register is challenging, with just 14% of applicants having succeeded.

Coinbase already had a presence in the U.K. through its CB Payments Ltd. subsidiary, which has provided e-money services since 2018. The London-based unit did not offer cryptocurrency services directly, but acted as a gateway for customers to trade crypto on entities within the Coinbase group.

"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," a Coinbase spokesperson told CoinDesk.

Coinbase will also now be able to talk to the FCA directly about its communications and plans without relying on a third-party approver as it was necessary beforehand.

"We're excited to talk about things like staking, the future of stablecoins in the U.K., and being [virtual asset service provider] registered is part of that for us," Grose said alluding to the FCA's incoming crypto regime.