Coinbase has received official approval from the United Kingdom’s Financial Conduct Authority (FCA) to operate as a registered virtual asset service provider (VASP). Announced on February 3, this milestone solidifies Coinbase’s position as the largest registered crypto exchange in the UK and marks a significant step in its international expansion.
What FCA Approval Means for Coinbase
The FCA’s approval allows Coinbase, a Nasdaq-listed company, to offer crypto-to-fiat services to both retail and institutional clients in the UK. This regulatory green light makes the UK Coinbase’s largest market outside the United States, where the company is headquartered. Notably, Coinbase is the first crypto asset firm to be added to the FCA’s register in 2025, following trading firm GSR Markets, which received approval in late December 2024.
This comes less than a year after the FCA concluded an investigation into Coinbase Payments over “unintentional breaches” of a 2020 voluntary agreement. The investigation centered on the onboarding of high-risk customers, which led to a £3.5 million (approximately $4.3 million) fine for the company. Despite this setback, Coinbase has successfully navigated the regulatory landscape to secure its current standing.
The UK’s Growing Role in the Crypto Space
The UK, currently the world’s sixth-largest economy by gross domestic product, is positioning itself as a global hub for cryptocurrency. The FCA has announced plans to establish a comprehensive regulatory framework for digital assets by 2026. A recent FCA survey from November 2024 revealed that crypto adoption is on the rise in the UK, with 12% of adults holding digital assets, up from 10% the previous year. Additionally, the average holdings per investor increased from £1,595 ($1,964) to £1,842 ($2,268).
Coinbase’s Broader European and Asian Expansion
Coinbase’s regulatory approval in the UK adds to its growing list of licenses across Europe. The exchange is already licensed in Ireland and Germany, while its Irish entity is registered as a crypto service provider in the Netherlands and Italy. This expansion reflects Coinbase’s strategy to establish a strong foothold in key global markets.
Looking beyond Europe, Coinbase has set its sights on Southeast Asia. During the recent World Economic Forum in Davos, Switzerland, Coinbase CEO Brian Armstrong met with Filipino Finance Secretary Ralph Recto to discuss potential entry into the Philippine market. The company has been actively engaging in the region, supporting developer initiatives in the Philippines and Thailand to build local stablecoins.
Coinbase has also commissioned studies in five countries, including the Philippines, to explore how cryptocurrency can improve financial systems. The exchange already operates in Singapore, having secured regulatory approval there in October 2023.
