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Coinbase Wins UK License to Offer Derivatives and Equities

Coinbase secured a UK investment services authorization, unlocking derivatives for institutions and equity trading for retail users.

Coinbase has obtained a UK investment services license that dramatically broadens the products it can legally offer British customers, the crypto exchange announced. The authorization positions Coinbase to compete more directly with traditional financial brokers on its home turf — a significant strategic pivot for a platform built primarily on cryptocurrency trading.

Under the new license, institutional and advanced traders will gain access to derivatives products, instruments that allow sophisticated market participants to hedge positions or speculate on price movements without directly holding the underlying assets. The expansion into derivatives is a notable step for a company that has historically centered its business around spot crypto markets.

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Retail users stand to benefit as well. The authorization also permits Coinbase to offer equity trading to everyday British investors, putting it in competition with established UK stock-trading platforms. That move could attract a new segment of customers who may not have previously considered Coinbase relevant to their investing needs beyond digital assets.

The dual-track approach — derivatives for professionals, equities for consumers — reflects a broader ambition by Coinbase to evolve into a full-service financial platform rather than a crypto-only exchange. Winning regulatory approval in the UK, one of the world's more demanding financial jurisdictions, could also lend credibility to the company's efforts to secure similar expansions in other markets. Analysts may watch closely to see whether this licensing milestone accelerates Coinbase's international growth strategy.

Continue reading at Cointelegraph.

Continue reading at Cointelegraph →

Frequently Asked Questions

Q.What does Coinbase's new UK license allow the company to do?

The UK investment services authorization allows Coinbase to offer derivatives products to institutional and advanced traders, while also enabling retail users to trade equities.

Q.Who can access derivatives on Coinbase in the UK?

Derivatives access under the new UK license is available to institutional and advanced traders, not general retail customers.

Q.Will retail users in the UK be able to trade stocks on Coinbase?

Yes, the new UK authorization permits Coinbase to offer equity trading to retail users, expanding the platform beyond cryptocurrency products.

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