Coinbase breaks into UK traditional markets
Coinbase, the Nasdaq-listed crypto exchange, has secured a key regulatory approval in the United Kingdom that will allow it to offer not only cryptocurrencies but also equities and derivatives to loca
This move comes as Coinbase already holds a UK e-money license and received its Financial Conduct Authority (FCA) cryptoasset registration in February 2023. The company’s latest approval lets it diversify its offerings ahead of the UK's comprehensive crypto regulatory regime, which is scheduled to take effect in October 2027. On paper, Coinbase is still primarily known for digital assets, but this license positions it to compete directly with traditional brokers long before most rivals can adjust.
Coinbase’s new UK license specifically covers both equities and derivatives for institutional and advanced traders as of June 2024.
Retail investors gain stock access
For the first time, retail users in the UK will be able to trade equities directly on Coinbase. Previously, only U.S. customers could access stocks and exchange-traded funds through the platform. This new capability opens up access for millions of British users who may want exposure to companies like Apple or Microsoft without leaving their crypto exchange environment. According to coindesk.com, Coinbase plans to eventually offer tokenized stocks—digital representations backed one-for-one by real U.S. shares—to eligible non-U.S. users, including those in the UK.
It’s unclear exactly when retail equity trading will launch for all UK customers.
Currently, eligible non-U.S. users can already trade USDC-settled perpetual futures contracts on major U.S. companies via Coinbase’s international platform. This means that British traders may soon have access not just to spot equities but also innovative products like tokenized shares that pay dividends and reflect underlying ownership—features that blur the line between traditional finance and digital assets.
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UK traders eye perpetual futures
Institutional and advanced traders stand to benefit from immediate access to perpetual futures across three asset classes: crypto, equities, and commodities. These are derivative contracts with no expiry date—a popular tool for hedging or speculation among sophisticated market participants. The FCA banned retail sale of derivatives referencing certain crypto assets back in 2021 due to concerns about consumer protection; however, it has since announced that retail investors will regain access to some crypto exchange-traded notes (ETNs) starting October 8, 2025.
This creates a micro-contrast: while advanced traders can now explore new strategies on Coinbase’s UK platform immediately after this license approval, most retail investors must wait until at least late 2025 for broader derivative access under FCA rules. In the meantime, institutional clients are likely to drive early adoption of these products.
UK crypto framework still years away
Despite these advances by Coinbase, the broader regulatory landscape remains unsettled for years to come. The UK’s new crypto regime will begin accepting applications from platforms and intermediaries in September 2027 and take full effect a month later in October 2027. Until then, companies like Coinbase can operate under transitional arrangements if they hold appropriate licenses such as FCA registration or investment permissions.
FCA research cited by Coinbase estimates that around 7 million adults in the UK currently hold some form of crypto asset—a substantial base as new products roll out. However, with full regulation still more than three years away, market participants face an extended period of uncertainty about future compliance requirements and competitive dynamics.
What the data may reveal next
If the FCA’s reopening of retail access to certain crypto ETNs proceeds as scheduled on October 8, 2025, Coinbase retail users in the UK could immediately gain access to these products, though whether all planned offerings will be permitted remains unclear due to ongoing regulatory restrictions.
