The Financial Conduct Authority of UK has granted Coinbase e-money license that lets the wallet and exchange platform to do fiat activities. And that means users can sit back that their funds would be more secure. But the license does not apply to Cryptocurrencies or crypto assets.
So, if the company gets into any sort of trouble, only the fiat funds of users stay safe.
The UK license will grant permissions for Coinbase to operate in the other 23 European Union member countries. But the license validity to operate in European Union countries depends on how britain exits from the EU.
However, Coinbase is not bothering about that. And the company is willing to apply for license again in European Union if required.
Also, Coinbase is the first crypto-exchange in Britain to open a bank account; reportedly with the Barclays bank. With that, Coinbase has integrated Faster Payments System, and the UK users no longer need to depend on SEPA (Single Euro Payments Area) which is popular with cross-border transactions among the participating countries of Europe.
For Coinbase, UK has been a major market. And with the new license, the company will serve its customers much better.
Coinbase will launch a pilot program to a few institutional customers, and will slowly roll out the updates to the entire customer base.
The new license obtained by Coinbase will attract even more exchanges to follow the same path. And the Coinbase reported that it has much wider growth in its European activities and customer base in the year 2017.
Already countries like Estonia, Cayman Islands, and Belarus have become some good places to conduct cryptocurrency related businesses.
On the other hand, Japan, Singapore, and Hong Kong are doing well on the Asian front. However, Europe seems to have much better growth and looks to become the world’s hub for crypto.
Which region do you think will ride the next biggest crypto-boom?