Coinbase Granted UK E-Money License & Bank Account for UK, EU Markets
Major cryptocurrency market Coinbase is making significant strides in its European growth.
San Francisco-based Coinbase has received an e-money permit by the Financial Conduct Authority (FCA), the UK's financial regulator, enabling the cryptocurrency exchange to provide payment- and electronic money services as money alternatives to clients in the uk and 23 countries within the European Union.
Coinbase UK chief executive Zeeshan Feroz asserts the license mandates Coinbase to comply with 'strict principles' enforced by UK regulators. Additionally, Coinbase is laying claim to becoming the first cryptocurrency exchange to receive its own UK-based bank accounts wherein Coinbase will join the UK's Faster Payments Scheme for faster and more efficient bank transfers. Once implemented, UK customers will have the ability to send and receive fiat pounds to/from Coinbase at a significantly faster pace than the present system.
Coinbase UK currently employs an Estonian bank to process deposits and withdrawals from local customers. The new license will see customers' fiat funds separated from Coinbase's own funds, placed in different bank accounts. In other words, Coinbase's UK subsidiary is closer than it's ever been to playing with the rules as a recognized financial institution.
«We are committed to making sure customer funds are always protected and this update means that our e-money surgeries have safeguards and operational standards at par with other regulated financial institutions,» explains CEO Feroz. «An instance of this is segregation of customer funds, where all customer fiat accounts will be separated from Coinbase's funds and kept in separate bank accounts.»
Using its newly-acquired e-money license and its own bank accounts, Coinbase adds it plans to meet the greater demands of the European market which, it asserts, grew twice as fast as any other market globally in 2017. To meet that demand, Coinbase is notably likely to expand its London-based team by eight times the current employee count by the year's end.
The UK's FCA has previously granted its e-money license to bitcoin startup Circle in April 2016.