
Before you take your first steps into cryptocurrency, you need to know you’re doing it legally. With Coinbase being one of the most popular platforms, it’s only fair to ask: is Coinbase legal in the UK? Is it FCA-regulated? In this article, we’ll put your worries to rest, proving why Coinbase is a legit and secure choice in 2025.
What is Coinbase?
Coinbase is one of the world’s leading cryptocurrency platforms, launched in 2012 by Brian Armstrong, who currently serves as its CEO. Headquartered in San Francisco, Coinbase provides a secure and user-friendly way to buy, sell, transfer, and store cryptocurrencies like Bitcoin and Ethereum. With over 245,000 ecosystem partners in more than 100 countries, it has become a trusted name for individuals and businesses to invest, save, spend, and earn with crypto.
As of today, Coinbase handles a staggering $185 billion in quarterly trading volume and safeguards $273 billion in assets. It operates in over 100 countries, offering tools and services to make crypto accessible to millions of users worldwide. But for British residents considering using Coinbase, the big question is: Is Coinbase legal in the UK?
Is Coinbase Legal in the UK?
Yes, Coinbase is completely legal in the UK. It operates through CB Payments, Ltd., a company fully regulated by the UK’s Financial Conduct Authority (FCA). We visited the FCA’s financial services register to confirm this fact.

This isn’t just a box-ticking exercise—being FCA-regulated means Coinbase follows strict rules designed to protect users, including those about anti-money laundering (AML) and verifying customers’ identities. CB Payments, Ltd. is officially registered as an electronic money institution under FCA registration number 900635.

Coinbase’s registered office is located at The Scalpel, 18th Floor, 52 Lime Street, London, EC3M 7AF, so it’s firmly rooted in the UK’s financial system.
On top of that, Coinbase complies with the FCA’s Financial Promotions Regime which came into effect in October 2024. This includes risk warnings, checks to ensure crypto is suitable for users, and a more cautious onboarding process. This commitment to following the rules shows that Coinbase is serious about staying transparent and trustworthy for UK customers.
But being legit isn’t enough—is Coinbase safe? Let’s dive into that next.
Is Coinbase Safe for UK Users?
Yes, Coinbase is safe for UK users, and here’s why: First, Coinbase prioritizes security at every level. It uses two-factor authentication (2FA) to protect accounts and stores the majority of digital assets in cold storage, which keeps funds offline and away from potential cyberattacks.
Additionally, Coinbase carries crime insurance, which protects a portion of digital assets held on its platform from theft, including cybersecurity breaches. However, it’s important to note that this insurance does not cover losses due to unauthorized access to your account caused by weak or compromised credentials. That’s why it’s crucial to use a strong password and keep your login details secure.
For cash balances, Coinbase ensures that funds are held in dedicated custodial accounts separate from its corporate funds, which adds another layer of protection. In the UK, these funds are not directly backed by government guarantees like the FDIC or SIPC in the U.S., but Coinbase ensures they are safeguarded under strict custodial regulations.
It is worth noting, however, that Coinbase faced a challenge in the UK in 2020 when it temporarily suspended Faster Payments, a key method for depositing and withdrawing GBP. This caused frustration among users. Coinbase addressed the issue by partnering with ClearBank, restoring Faster Payments access and reinforcing its commitment to providing reliable services for UK customers.
Now that you know that Coinbase is legal and safe, let’s see why many people in the UK choose it as their go-to platform for cryptocurrency.
Benefits of Using Coinbase in the UK
One of the key reasons Coinbase stands out in the UK is its status as a regulated platform under the FCA. As mentioned, this regulation gives UK users confidence in its legitimacy and trustworthiness.
Coinbase is also known for its user-friendly interface, making it easy for both beginners and experienced traders to navigate the world of cryptocurrency. Whether you’re buying your first Bitcoin or managing a diverse portfolio, the platform simplifies the process.
Another major benefit is its seamless integration with GBP payments, allowing users to deposit and withdraw funds directly to and from their UK bank accounts. This eliminates unnecessary complications and makes transactions faster and more convenient.
Finally, Coinbase offers strong customer support tailored to UK residents. Whether you have a question about your account or need help with a transaction, their support team is ready to assist, ensuring a smooth experience for all users.
With these benefits, Coinbase provides a secure, accessible, and reliable way for UK users to engage in cryptocurrency trading.
Where Coinbase falls short
While Coinbase offers many advantages, there are a few areas where it falls short. One of the biggest concerns is its fee structure. Coinbase charges fees for transactions, and while these fees are disclosed before completing a purchase, they are often higher than on other platforms. What’s more, the fee system lacks transparency and can be difficult to understand, leaving users frustrated when trying to calculate costs in advance.
Another downside is Coinbase’s past regulatory and operational issues. For example, in 2024, CB Payments, Ltd., was fined £3.5 million by the FCA for failing to comply with rules meant to limit high-risk activities. Although Coinbase has since taken steps to address these issues, it’s worth considering its track record.
Security is another consideration. While Coinbase is known for strong security measures, the platform experienced a significant hack in 2021 where about 6,000 customer accounts were compromised. Though Coinbase reimbursed affected users and has since enhanced its security protocols, this incident highlights the importance of personal account protection, such as using two-factor authentication and safeguarding login credentials.
Lastly, the risks associated with cryptocurrency trading cannot be overlooked. The market’s volatility means prices can swing dramatically, posing a significant risk for users, especially beginners. While Coinbase is a solid platform, users should carefully assess their own risk tolerance and investment goals before engaging in crypto trading.
Comparing Coinbase with other exchanges
While Coinbase is a leading platform, it’s worth exploring alternatives available in the UK like Binance, Kraken, and eToro.
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Regulation |
Regulated by the FCA. |
Not FCA-regulated. |
Registered with FinCEN in the US; complies with EU and UK laws but lacks direct FCA registration. |
FCA-regulated. |
Security |
Two-factor authentication, cold storage for 98% of funds, insurance against cybercrime (not personal account breaches). |
2FA, cold storage, and regular audits. No insurance coverage for stolen funds. |
2FA, 95% of funds in cold storage, and bug bounty programs to identify vulnerabilities. |
2FA and cold storage for funds. |
Fees |
1% transaction fee + spread (up to 2%); high fees for debit card purchases (3.99%). |
Spot trading fees: 0.1% maker/taker; discounted to 0.075% with BNB (Binance token). |
Maker/taker fees: 0.16%/0.26%. No deposit fees for GBP; withdrawal fees: £1.95. |
Fees embedded in spreads (often 1% or more for crypto). $5 withdrawal fee. |
Crypto Support |
200+ |
350+ |
220+ |
80 |
GBP Integration |
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Conclusion: Is Coinbase Legal and Safe in the UK?
Coinbase is a legitimate and trustworthy platform for UK users. Its FCA regulation, focus on security, and dedication to providing a reliable trading experience make it a solid choice for anyone venturing into cryptocurrency.
That said, like any financial decision, it’s important to weigh your options and understand the risks involved. Whether you choose Coinbase or one of its competitors, the key is to stay informed and make decisions that align with your financial goals.
FAQs
1. What is Coinbase?
Coinbase is a cryptocurrency platform that allows users to buy, sell, trade, and store digital assets like Bitcoin and Ethereum. It offers a user-friendly interface and a secure environment for both beginners and experienced traders.
2. Is Coinbase FCA Regulated?
Yes, Coinbase is regulated in the UK by the Financial Conduct Authority (FCA) under CB Payments Ltd, with registration number 900635. This regulation ensures that Coinbase adheres to UK financial standards.
3. Is Coinbase Safe?
Coinbase prioritizes security with features like two-factor authentication (2FA), cold storage for crypto assets, and crime insurance to protect funds against theft. However, users should maintain strong passwords and safeguard their account credentials to prevent unauthorized access.
4. What are the fees for using Coinbase?
Coinbase charges variable fees depending on payment methods and transaction amounts. For example, debit card transactions can cost up to 3.99%, while bank transfers typically have lower fees. Always review the fee details before confirming a transaction.
5. Can UK users withdraw funds in GBP?
Yes, UK users can deposit and withdraw funds in GBP directly using bank transfers, which makes transactions seamless for British residents.
6. What cryptocurrencies can I trade on Coinbase?
Coinbase supports over 200 cryptocurrencies, including popular ones like Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and Litecoin (LTC), giving users access to a diverse range of digital assets.