UK Financial Regulator Gives E-Money License To Coinbase
Digital money services are officially expanded by Coinbase in the U.K and EU.
Coinbase received an e-money license from U.K.’s Financial Conduct Authority, according to Wednesday announcement. The license now enables the company the ability to provide payment services and issue digital cash alternatives, which can then be used to make card, internet or phone payments.
A spokesperson from Coinbase clarified that e-money is different from cryptocurrencies. According to the press release, the license comes with stringent regulations designed to protect customers.
“We are committed to making sure customer funds are always secure and this update means that our e-money operations have safeguards and operational standards at par with other regulated financial institutions. An example of this is segregation of client funds, where all customer fiat balances will be separated from Coinbase’s funds and kept in separate bank accounts.”
The FCA license makes Coinbase operating in 23 EU member nations, though it is unclear whether the upcoming U.K. exit from the EU will affect that.
As spokesperson mentioned, Coinbase cannot trade within the union until the so-called “Brexit.” The company will have to suspend operations until a second license from a member state has been granted, if certain rules allowing the company to continue trading are not preserved.
Coinbase additionally announced about joining the U.K. Faster Payments Scheme, which aims to provide efficient bank transfers to residents. According to the release, every U.K. customer should have access within the next few weeks, while the exchange will launch a pilot program.
The EU and U.K. are part of Coinbase’s efforts to meet increasing demand in the European market. The company also plans to multiply its London team by a factor of eight.