Coinbase has become the largest digital asset platform to secure registration on the U.K. Financial Conduct Authority’s (FCA) cryptoasset register on February 3, 2025.
A Regulatory Breakthrough for Coinbase
Only 14% of FCA’s crypto register applicants have succeeded in joining since its inception.
Therefore, Coinbase’s approval is a development that followed a six-month effort to address compliance requirements.
The requirements included enhanced anti-money laundering (AML) controls and risk management frameworks.
With the approval, Coinbase’s UK subsidiary, CB Payments Ltd, can offer:
- Direct cryptocurrency trading paired with GBP.
- Fiat-to-crypto conversions without third-party intermediaries.
- Staking services and stablecoin products pending FCA consultations.
Since 2018, CBPL has operated under an e-money license permitting only fiat transactions, requiring users to access crypto via other Coinbase entities.
Before the approval, CBPL had been at the center of a hefty fine of £3.5 million ($4.5 million). The fine was for anti-money laundering failures linked to onboarding 13,416 high-risk customers between 2020 and 2023.
However, because of Coinbase’s cooperation, they received a 30% penalty discount for early settlement, paving the way for reconciliation.
Market Implications of the FCA licence
After Coinbase became the largest exchange on the FCA’s cryptoasset register, it set a benchmark for rivals like Binance, which remain restricted from onboarding U.K. users.
This development also presents an opportunity for direct crypto services, including GBP-denominated trading pairs and fiat conversions without intermediaries.
Furthermore, there could be future plans for FCA-approved staking and GBP stablecoins. Its registration could also attract U.K. banks and asset managers who are hesitant about unregulated platforms.
However, there are still challenges regarding persistent scam risks, regulatory lag, the EU’s MiCA framework, and banks’ cautious crypto policies.
While the U.S. SEC continues litigation against major exchanges, the U.K.’s phased approach—penalizing non-compliance while rewarding remediation—offers a potential blueprint for balanced oversight.
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