Coinbase is currently in the process of expanding digital currency services in the European Union and the United Kingdom. The latest big addition to it is the grant of E-money license from the financial regulator in the United Kingdom. On Wednesday, Coinbase received the license from the Financial Conduct Authority allowing the provision of payment services and issuance of digital currency alternatives. This enables payments for card, phone and internet services.
According to an official in Coinbase, e-money is not similar to digital currencies. The company press release states the strict rules and regulations binding the license with the intention of protecting its clients;
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.
Impact of Brexit to the E-Money license
The license issued by the Financial Conduct Authority gives permission for Coinbase to operate in 23 European Union nations. So far it is unclear if the upcoming exit of United Kingdom from the European Union will have any effect on the validity of the license.
According to the Coinbase official, the company can trade within the EU until the occurrence of “Brexit”. The rules and regulations on the license related to payment transactions should meet the criteria of EU nations after Brexit. Otherwise, Coinbase will have to suspend its services till the issuance of another license from a member nation of the European Union.
In addition to e-money license, Coinbase plans to join the Faster Payments Scheme in the United Kingdom. The Faster Payments Scheme focuses on providing efficient bank transfers to the local community. According to the press release from Coinbase, the company will launch a pilot program initially. Every client in the U.K. will have access to it in the upcoming weeks.
Coinbase plans to expand its employee count in London by 8 times to cater the increasing market demand in the European and the United Kingdom markets.