UK Crypto Crackdown Aims to Eliminate Non-Compliant Firms, Says Coinbase Boss

Keith Grose, chief executive of Coinbase in the United Kingdom, has stated that new regulatory measures introduced by the Financial Conduct Authority will remove unscrupulous operators from the digital asset market. Speaking recently with City AM, he argued that these rules would eliminate firms unwilling to adhere to strict compliance standards, thereby increasing trust among consumers. The financial watchdog previously announced a significant overhaul of the industry requiring companies seeking to serve British clients to obtain specific approval and undergo heightened scrutiny.

Under the updated framework, crypto platforms must secure a full financial licence known as FSMA Part 4A Permission by October 2027 to conduct business with UK customers. All authorised entities are required to meet robust resilience standards and will face capital and stress testing designed to ensure they can withstand market shocks. The regulator has also implemented an industry-led framework focused on detecting and preventing market manipulation, insider trading, and illicit activity. Failure to obtain the necessary licence or refusal to comply with these regulations will result in platforms being completely removed from the domestic market.

Current figures indicate that approximately eight per cent of UK adults hold cryptocurrency, representing 4.5 million people according to the latest data released by the FCA. Grose believes that higher levels of regulation will enable the sector to legitimise itself with consumers who remain sceptical about digital assets. He noted that such measures build confidence in system security and allow users to seek recourse through the financial ombudsman should issues arise.

Grose also welcomed the return of Lucy Rigby as City minister, reflecting broader sentiment within the fintech industry regarding her understanding of how these companies drive economic growth. While Prime Minister Andy Burnham has previously expressed support for digital assets during his time as mayor of Greater Manchester, he has yet to fully cement his position on the matter. Grose urged ministers to continue progress made under the current government that allows fintechs more space in the domestic market and prevent US firms from luring companies away.

Coinbase recently received authorisation in the UK to provide traditional financial instruments such as equities and commodities alongside crypto assets. This development occurs as the exchange faces challenges within a weak cryptocurrency market, with its stock value falling significantly this year. The firm’s founder also announced plans to reduce global headcount earlier in April to cut costs. Grose stated that regulatory approval allows Coinbase to compete directly with established providers offering similar services and broaden capabilities beyond digital assets alone.