The UK chief executive of Coinbase, Keith Grose, has stated that the Financial Conduct Authority's (FCA) new rules for digital assets will "wipe out" firms unwilling to comply, thereby raising consumer trust. Grose told City AM that non-compliance will become a "no-go now in the UK."
The FCA's new regulations, unveiled earlier this month, mandate that crypto platforms must obtain a full financial licence, known as the FSMA Part 4A Permission, to conduct business with UK clients from October 2027. These firms will also be subject to higher scrutiny, stronger resilience standards, and capital and stress testing to ensure they can withstand market shocks. Failure to secure the licence or comply with the rules will lead to platforms being removed from the market.
Grose believes this increased regulation will help legitimise the sector for consumers who remain sceptical. He added that it "builds confidence in our overall system and security," allowing consumers recourse to the financial ombudsman if issues arise. Approximately eight per cent of UK adults, or 4.5 million people, currently hold cryptocurrency, according to the latest FCA figures.
Separately, Coinbase has also been granted authorisation in the UK to provide traditional financial instruments, such as equities and commodities, on its platform. Grose stated that this "stamp of approval" will enable Coinbase to compete with established providers and expand its offerings beyond the crypto market.