Strengthening Its UK Presence
Coinbase has been given the go-ahead by the UK’s FCA to operate as a registered Virtual Asset Service Provider, VASP. The exchange announced the milestone on February 3, confirming that it has emerged as the UK’s largest-registered crypto exchange.
The FCA’s approval allows Coinbase to offer crypto-to-fiat services and to provide services to both retail and institutional customers. For the first time, Them has become Coinbase’s largest market outside the US, furthering its strategic priority of regulated expansion.
First FCA-Registered Crypto Firm in 2025
Coinbase’s approval makes it the first FCA-registered crypto firm in 2025 and the first since GSR Markets’ approval in December 2024.
The company’s UK regulatory progress comes after the resolution of compliance issues related to a £3.5 million ($4.3 million) fine in 2024. The FCA previously investigated Coinbase Payments for onboarding certain high-risk customers, which the company described as “unintentional breaches” of a 2020 agreement.
UK’s Growing Crypto Adoption
The UK, which is the world’s sixth-largest economy, wants to establish itself as a global crypto hub. The FCA has plans to introduce an all-encompassing regulatory framework by 2026, one that balances innovation with investor protection.
A survey by the FCA in November 2024 showed that crypto adoption in the UK has risen, with 12% of adults holding digital assets, compared to 10% in 2023. The average holdings per investor increased from £1,595 ($1,964) to £1,842 ($2,268), reflecting increased confidence in the sector.
Global Expansion Strategy of Coinbase
Coinbase is continuing its European expansion, adding the UK to its licensing portfolio alongside Ireland, Germany, the Netherlands, and Italy.
Beyond Europe, Coinbase is exploring Southeast Asian markets. At Davos during the World Economic Forum, CEO Brian Armstrong met with Filipino finance secretary Ralph Recto to discuss a possible entry into the Philippines.
Coinbase has been funding developer initiatives in the Philippines and Thailand, supporting local stablecoin projects. A Coinbase-commissioned study also explored crypto’s potential to enhance financial systems in Southeast Asia.
Already operational in Singapore, Coinbase’s FCA approval solidifies its place among the leading regulated crypto exchanges in the world.
