Coinbase and Circle Expand in Europe with French Regulatory Approval
Crypto exchange Coinbase and stablecoin operator Circle have both received regulatory approval from the French Financial Markets Authority (AMF), allowing them to expand their operations in Europe. Coinbase has obtained a virtual asset service provider (VASP) license, enabling it to operate as a digital asset trading venue and offer cryptocurrency trading, crypto-fiat pairs, and crypto custodial services. Meanwhile, Circle has announced conditional registration with the AMF and aims to obtain a full Digital Asset Service Provider (DASP) license. These moves come ahead of the implementation of the European Union’s Market in Crypto-Assets (MiCA) legislation, which will replace individual digital asset rules within EU member states.
Preparing for MiCA Amid US Regulatory Scrutiny
As Coinbase and Circle strengthen their presence in Europe, they face increased scrutiny from regulators in the United States. The Securities and Exchange Commission (SEC) has sued both exchanges for allegedly offering unregistered securities. SEC Chair Gary Gensler has expressed a skeptical view of crypto assets, considering most tokens as securities and asserting that virtual currencies fall under existing financial regulations. Coinbase disagrees with the SEC’s stance on crypto securities and has requested transparent rules through a rule-making plea, which the SEC denied. This ongoing regulatory tension has prompted Coinbase to seek legal recourse.
Hot Take: Coinbase and Circle Expand Amid Regulatory Challenges
Coinbase and Circle’s expansion into Europe following regulatory approval from the French AMF demonstrates their commitment to growing their presence outside of the United States. By obtaining licenses that allow them to operate as digital asset service providers, they can offer a range of cryptocurrency services to European customers. However, these moves come at a time when both companies are facing regulatory challenges in the U.S., particularly from the SEC. The ongoing legal battles and differing views on the classification of crypto assets highlight the need for clearer regulations in the industry. As Coinbase and Circle navigate these regulatory hurdles, their ability to expand and adapt to evolving compliance requirements will be crucial for their long-term success.
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