Coinbase, the Nasdaq-listed cryptocurrency exchange, has secured full authorisation from the Financial Conduct Authority under the UK's new cryptoasset regulatory framework, making it one of the first major international platforms to achieve the enhanced licence. The authorisation permits Coinbase to offer a full suite of services to UK retail and institutional clients, including spot trading, custody, staking, and its recently launched derivatives platform. The company has committed to investing £150 million in its UK operations over the next three years and plans to expand its London office from 280 to approximately 850 employees.

The expanded UK operation will serve as Coinbase's European institutional hub, with a particular focus on serving pension funds, asset managers, and family offices seeking regulated crypto exposure. Head of Coinbase UK, Marcus Hughes, told reporters that institutional inflows from UK clients had grown 340 percent year-on-year, driven largely by the regulatory clarity provided by the new framework. The platform has already onboarded 14 UK-regulated asset managers since receiving its authorisation, with combined assets under management exceeding £2.8 billion.

The move represents a significant vote of confidence in the UK's crypto regulatory approach, particularly as the European Union's MiCA framework faces criticism for being overly prescriptive. Coinbase's chief policy officer, Faryar Shirzad, contrasted the UK's "outcomes-based" model favourably with the EU's "rules-based" approach, suggesting that London could attract firms seeking a more flexible regulatory environment. However, Kraken, another major US exchange, has taken a more cautious stance, stating it is still evaluating whether the compliance costs of full FCA authorisation justify the investment given the size of the UK market.