Coinbase’s Groundbreaking Step: VASP Registration in the UK

Coinbase’s Groundbreaking Step: VASP Registration in the UK

Coinbase, one of the foremost cryptocurrency exchanges globally, has recently marked an important regulatory achievement by securing Virtual Asset Service Provider (VASP) registration within the United Kingdom. This landmark event highlights a broader trend where various governments are gradually recognizing and formalizing the use of digital currencies into their financial systems. On February 3, Coinbase’s Chief Policy Officer, Faryar Shirzad, took to the social media platform X to share this thrilling update, stating that Coinbase is now the largest registered VASP in the UK.

This registration is monumental, particularly against the backdrop of the UK’s Financial Conduct Authority (FCA) which has historically been stringent, rejecting many crypto-related registration applications over the past year. The approval of Coinbase signifies a shift towards more inclusive policies for cryptocurrency platforms, potentially encouraging more players to operate legally within the UK’s financial framework. With this step, the number of approved crypto platforms in the UK has risen to around 50, indicating a growing acceptance of digital currencies within regulated parameters.

Prior to obtaining VASP registration, Coinbase conducted its UK operations through a subsidiary known as CB Payments Ltd., which has been offering e-money services since 2018. This transition from conventional e-money services to a fully-fledged crypto service aggregator underscores Coinbase’s commitment to aligning itself with emerging regulatory frameworks. The adherence to the updated Money Laundering, Terrorist Financing, and Transfer of Funds (Information on the Payer) Regulations 2017 enhances its standing in this relatively nascent market.

With this registration under its belt, Coinbase is now authorized to facilitate transactions involving both cryptocurrency and fiat currency for users in the UK. However, it is essential to note that there are still operational limitations in place. Specifically, Coinbase will not be able to run automated systems that convert cryptocurrencies to cash and vice versa. This restriction reflects ongoing concerns related to market stability and consumer protection within the regulatory framework.

Coinbase’s VASP registration in the UK arrives shortly after receiving similar approval from Argentina’s National Securities Commission (CNV). These achievements form part of Coinbase’s comprehensive international expansion strategy, which is designed to penetrate various markets while committing to regulatory compliance. The company emphasizes the importance of working collaboratively with regulatory bodies across different jurisdictions, which aims to foster economic freedom and innovation in the digital asset space.

Ultimately, Coinbase’s mission is to onboard the next billion users into the cryptocurrency universe while steadfastly maintaining safety standards for customer assets. The acquisition of VASP registration in the UK is a pivotal step towards that goal, paving the way for improved customer trust and a more structured market environment for both existing and prospective crypto investors. As the global regulatory landscape continues to evolve, Coinbase’s proactive approach will likely serve as a benchmark for other cryptocurrency platforms seeking legitimacy and operational autonomy in diverse regions.

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