Home / Uncategorised / Coinbase Gets an E-Money License from U.K. Financial Regulator

Coinbase Gets an E-Money License from U.K. Financial Regulator

Coinbase is one of the more popular and user-friendly choices for cryptocurrency investors to trade in Cryptocurrency, In fact, it’s one of the top exchanges in the U.S and is expanding their digital money services in EU and UK.

Coinbase was granted an E-money license by the U.K.’s Financial Conduct Authority the company announced Wednesday. The license enables the company the ability to provide payment services and issue digital cash alternatives, which can then be used to make the card, internet or phone payments.

From a regulatory point of view, this implies Coinbase is presently ready to issue e-cash and give payment services in the U.K. Furthermore, will have passed extra checks as far as things prefer the isolation of customer reserves, which implies that client fiat balances (ie when you deposit funds, for example, Sterling) are isolated from Coinbase’s own particular operational funds and kept in separate bank accounts.

A Coinbase agent clarified that e-money is different from cryptocurrencies. As such, the license comes with stringent regulations designed to protect customers, according to the press release. To that end, Coinbase explained:

“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.”

At the end of the day, if Coinbase becomes bankrupt or stops to work as a business going ahead, the idea is that any fiat money the organization is taking care of for your benefit won’t get retained with it. Note, it doesn’t mean deposits are protected by the regulator itself — as a full banking license would do — nor does it say anything about how safe your Coinbase cryptocurrency wallet is. But, either way, it is definitely a good and important step for Coinbase’s ability to better serve customers in the U.K. and the EU.

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