On Wednesday, U.S largest cryptocurrency exchange company Coinbase, has announced that “The UK’s Financial Conduct Authority has approved its e-money license.”
The license will now allow the company to offer the payment services and also to issue digital cash alternatives, which can be used to make payments through cards, internet and phones.
In a press release issued by Coinbase CEO for UK Zeeshan Feroz, has clarified that “As e-money is different from cryptocurrencies, it comes with strict rules enforced by FCA and Payment Services Directive, which is designed to protect its customers.”
Zeeshan also said that “We are committed to make sure that the customer funds are always secure and this update means that our e-money operations have safeguards and working standards at par with other regulated financial institutions. An example this is segregation of client funds, where all customers fiat balances will be separate from Coinbase’s funds and kept in separate bank accounts.”
“Coinbase can trade within the union until the so-called “Brexit”. If certain rules allowing the company to continue trading are not preserved, than the company will have to suspend its operations until a second license from the member state has been granted,” He added.
In addition to its e-money license, Coinbase also announced that it s joining the U.K Faster Payments Scheme, which aims to offer more efficient bank transfers to local resident.