Coinbase has secured a UK license enabling the exchange to offer equities and derivatives, expanding its regulated product lineup in one of Europe’s largest financial markets.
The license, known as a MiFID authorization, was granted by UK regulators and allows Coinbase to operate investment services beyond its core cryptocurrency trading business. Coinbase announced the approval on its official blog, confirming the scope covers both equities and derivatives products. For related coverage, see Swiss Bitcoin App Relai Secures MiCA License in France.
TLDR KEYPOINTS
- Coinbase obtained a MiFID license in the United Kingdom, authorizing it to offer equities and derivatives.
- The approval marks a significant expansion beyond Coinbase’s crypto-only product offering in the UK.
- The license positions Coinbase to compete with traditional investment platforms in a major regulated market.
What Coinbase’s UK License Allows
The MiFID (Markets in Financial Instruments Directive) framework governs investment services across European and UK markets. Obtaining this authorization means Coinbase can now legally offer regulated financial instruments, including stock trading and derivatives contracts, to UK customers. For related coverage, see BlackRock Deposits 2,265.685 BTC Worth $142.45 Million Into Coinbase.
For a company that built its reputation on cryptocurrency exchange services, the license represents a structural shift. Coinbase can now operate as a regulated investment firm in the UK, subject to oversight by the Financial Conduct Authority. The firm’s registration is publicly listed on the FCA register. For related coverage, see Kalshi Secures Legal Win in Nevada Prediction Market Dispute.
This follows a pattern of Coinbase securing regulatory licenses across Europe, including a recent MiCA license in Luxembourg for EU operations.
Why Equities and Derivatives Broaden Coinbase’s Reach
Equities, meaning traditional stock trading, and derivatives, which include futures and options contracts, represent entirely different product categories from spot cryptocurrency trading. Adding these instruments allows Coinbase to serve users who want both crypto and traditional assets on a single platform.
The move diversifies Coinbase’s revenue beyond crypto transaction fees, which have historically fluctuated with market cycles. Derivatives in particular tend to generate sustained trading volume regardless of market direction, as traders use them for hedging and speculation alike.
The expansion mirrors a broader trend of crypto-native firms pursuing traditional finance licenses. Other companies in the digital asset space have similarly sought regulatory approvals to widen their product scope, as seen with firms like MoonPay securing its New York BitLicense.
What the UK Approval Signals
The UK remains one of the world’s largest financial markets and a key jurisdiction for any firm seeking global credibility. A MiFID license there carries weight with institutional clients and retail users who prioritize regulatory compliance when choosing a trading platform.
For UK-based investors, the approval could mean access to a wider range of financial products through a platform many already use for cryptocurrency. It ties Coinbase more closely to the traditional financial infrastructure that regulators and institutional players expect.
The development marks both a regulatory milestone and a strategic business decision, positioning Coinbase to compete not just with other crypto exchanges but with established UK brokerages and investment platforms.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
