The Financial Conduct Authority of Great Britain (FCA) issued a license for operations with electronic money (E-money) to the largest US crypto exchange Coinbase. Now the site has the right to provide payment services in the country and issue digital alternatives to cash that can be used to make electronic, telephone and Internet payments. This is reported by CoinDesk.
However, as stressed in Coinbase, "electronic money" is not crypto currency. Therefore, the license implies a more stringent regulation aimed at protecting consumers.
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.
It is noteworthy that, nominally, the FCA license allows Coinbase to work in 23 EU countries, but it is unclear whether this will affect the likely exit of the UK from the EU.
In Coinbase noted that the company can trade inside the union up to the so-called Brexit, but if the relevant rules lose force after the release of the UK, the site will need to suspend its activities in the relevant territories until an updated license is received.
In addition to the E-money license, Coinbase announced the accession to the British initiative Faster Payments Scheme, designed to increase the efficiency of bank transfers for residents of the country.
Access to the markets of the UK and Europe was Coinbase's response to the constantly growing demand for services in these regions. The company also plans to increase the staff of its London branch by eight times.