Coinbase has announced that it has been granted an e-money license by the UK Financial Conduct Authority (FCA), giving the San Francisco-based crypto exchange the ability to issue electronic money and provide payment services in the country. The approval also places Coinbase under regulatory standards similar to those applied to traditional financial operators, including the segregation of customer fiat balances from company funds in separate bank accounts.
A stronger legal base for the UK and Europe
The license is significant not only for Coinbase’s UK operations but also for its broader European ambitions. Under the EU passporting framework cited in the report, authorized financial services firms can operate in other EU member states with minimal additional approval. Coinbase UK CEO Zeeshan Feroz said the company’s e-money license would extend beyond the UK into 23 countries across the EU, helping the exchange build new partnerships and deliver a smoother product experience for users.
Feroz added that Coinbase remains focused on safeguarding customer funds, and that the new status means its e-money operations will carry protections and operating standards on par with other regulated financial institutions.
Faster payments for UK users
Alongside the licensing news, Coinbase said it would add support for the UK’s Faster Payments Scheme (FPS). The move is intended to give local users a more familiar, seamless, and faster way to move money, backed by major British banks. The company said the transition away from the Single Euro Payments Area (SEPA) would begin with a pilot program for a limited number of institutional clients before rolling out to all UK customers in the following weeks.
London hiring set for major expansion
Coinbase also signaled a substantial increase in its UK presence. According to Feroz, since the company began serving European users in 2014, the crypto sector has expanded sharply, and the EU grew twice as fast as any of Coinbase’s other markets in 2017. The UK remains its largest market in the region. To meet rising demand, Coinbase plans to grow its London team by 8x before the end of the year.
Taken together, the FCA license, FPS integration, and aggressive hiring plans show Coinbase strengthening both its regulatory footing and operational reach in Europe as competition among licensed crypto exchanges intensifies.