TLDR
- Coinbase received a Virtual Asset Service Provider (VASP) license in the UK on February 4, 2025, enabling them to offer digital asset trading to both retail and institutional clients
- The UK represents Coinbase’s second-largest market, with the US remaining its primary market with approximately 8 million monthly active users
- The company has added notable figures to its advisory council, including former Federal Reserve Bank of New York president William Dudley and Trump campaign co-manager Chris LaCivita
- Coinbase Payments, the company’s subsidiary, has been operating e-money services in the UK since 2018 but previously couldn’t offer crypto products
- The company is planning to expand its derivatives offerings by launching Solana futures contracts, pending CFTC approval
Cryptocurrency exchange Coinbase has secured approval to offer digital asset services in the United Kingdom, marking a major expansion of its operations in Europe’s financial hub. The company announced on February 4, 2025, that it had received a Virtual Asset Service Provider (VASP) license from British regulators.
The new license allows Coinbase to provide digital asset trading services to both retail and institutional customers in the UK. This development builds upon the existing presence of Coinbase Payments, the company’s subsidiary, which has been offering e-money services in the country since 2018.
Prior to obtaining the VASP license, Coinbase was limited in its ability to offer crypto products and services to UK users. The approval comes after regulators completed an investigation into Coinbase Payments regarding what the company described as “unintentional breaches” of a voluntary agreement made with British authorities in late 2020.
According to company statements, the UK has emerged as Coinbase’s second-largest market globally. The United States remains the company’s primary market, where it serves approximately eight million monthly active users, based on their latest quarterly financial reports.
The approval process included a thorough review by British regulators, resulting in Coinbase becoming what it claims is the largest registered digital assets player in the UK. This achievement aligns with the company’s stated goal of bringing one billion people into the crypto economy globally.
In related developments, Coinbase has recently strengthened its advisory board with several high-profile appointments. The company added William Dudley, former president of the Federal Reserve Bank of New York, and Chris LaCivita, co-manager of Donald Trump’s 2024 campaign, to its global advisory council.
The company’s expansion efforts extend beyond traditional trading services. Coinbase is actively working with the Commodity Futures Trading Commission (CFTC) to launch cash-settled Solana futures contracts on its derivatives exchange, demonstrating its push to diversify its product offerings.
The path to UK approval follows several years of European expansion efforts by Coinbase. The company established a presence in Dublin in 2018 and began serving German customers in 2020, showing a consistent pattern of growth across the continent.
Historical records show that Coinbase had previously explored potential acquisition opportunities to accelerate its European expansion. According to Fortune Magazine, the company considered purchasing FTX Europe following the collapse of FTX in late 2022, though these discussions did not advance to late stages.
The new VASP license enables Coinbase to engage with various marketing channels across the UK region and launch new crypto products. A company representative confirmed that Coinbase Payments can now provide both fiat and crypto services to their UK customer base.
This regulatory approval arrives at a time when Coinbase is actively working to expand its global reach and diversify its revenue streams. The company has maintained its position as a major player in the US market while simultaneously building its presence in key international markets.
The licensing process required Coinbase to demonstrate compliance with UK regulatory standards and consumer protection measures. This achievement represents a continuation of the company’s strategy to operate within established regulatory frameworks across different jurisdictions.
The timing of the approval coincides with Coinbase’s broader efforts to strengthen its institutional offerings and expand its derivatives business. These initiatives show the company’s focus on developing multiple revenue streams across different market segments.
Reports indicate that Coinbase’s UK operations will maintain close alignment with local regulatory requirements while offering services comparable to those available in other markets where the company operates.
The most recent company data shows that Coinbase continues to process a large volume of transactions in the UK market, second only to its US operations in terms of scale and activity.
