In the latest news, the US Crypto Exchange Coinbase obtains e-money FCA license. The CEO of UK Coinbase, Zeeshan Feroz highlighted that the license is only valid for the Coinbase’s fiat activities, not the crypto business.
15 March, AtoZForex – One of the most popular cryptocurrency exchanges in the US, Coinbase, has reportedly received an e-money license from the primary regulatory body of the UK, the UK Financial Conduct Authority (FCA).
US Crypto Exchange Coinbase Obtains e-money FCA License
The CEO of the UK Coinbase, Zeeshan Feroz, has published a blog post in relation to the news. He has noted that the license is only valid for the Coinbase’s fiat activities, not the crypto business. He has also stated that the “way to think about it is that’s all the fiat money that we handle: money in, money out.”
The e-money license is a specific license that is valid in the UK and 23 other countries in the European Union. This implies that Coinbase can “issue e-money and provide payment services in the UK.” Mr. Feroz further has stated that the act of receiving the FCA e-money license also signals an “approval of the compliance and the KYC processes we have today”. As Coinbase obtains e-money FCA License, Mr. Feroz has added:
“There’s an element of trust here in a business that is regulated by the FCA.”
Will Brexit Impact operations of Coinbase in the EU?
The FCA license of Coinbase most likely will not be valid in all of the European Union countries in case the UK leaves the bloc, as planned. This would potentially push the Coinbase to open another office within the EU.
Thanks to the fact that the EU cryptocurrency sector has advanced “twice as fast as any of other markets in 2017,” Feroz stated that Coinbase puts a lot of significance on its UK business:
“The UK is a huge market for us, Brexit or no Brexit. We’ve got access to a type of talent pool you can’t really get anywhere else besides the UK in Europe. We certainly intend to invest significantly in the UK office and the headquarters here.”
Yesterday, during the “Examining Cryptocurrencies and ICO Markets” hearing, the US Subcommittee on Capital Markets, Securities, and Investment has addressed ICOs and cryptocurrency, the provision of the legal support to the investors and the potential benefits for the economy. The development of a regulatory framework for these markets was also discussed.
The Chief Legal and Risk Officer at Coinbase wallet and cryptocurrency exchange, Mike Lempres has given a testimony during the hearing. He has stated that the power of cryptocurrency technology is capable of transforming “capital formation, innovation, and economy.”
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