Coinbase Secures Registration with French Regulator, Expanding Services in Europe
Cryptocurrency exchange Coinbase has received approval from France’s AMF watchdog to operate digital currency services in the country. The registration allows Coinbase to offer custody of digital assets, buy and sell digital assets with legal tender, trade digital assets against other digital assets, and operate a digital asset trading platform. This move comes as European regulators are catching up with the emergence of crypto and blockchain technologies, aiming to balance their potential for improving payment systems while protecting consumers.
European Union’s MiCA Regulation
The European Union is working on the Markets in Crypto Assets (MiCA) regulation, which will create a harmonized framework for regulated crypto companies to operate across the EU. Once implemented, crypto companies will be able to use their VASP license from one country to “passport” into other countries and offer their services throughout the EU without requiring individual registrations.
Expanding in Europe Amidst Uncertain Regulatory Environment in the US
The VASP registration represents a significant expansion move for Coinbase in Europe, especially as it faces an uncertain regulatory environment in the US. US regulators have recently taken strict actions against crypto companies, including settlements and lawsuits. The Securities and Exchange Commission (SEC) has targeted Coinbase and Binance with enforcement actions, considering several crypto tokens as securities that require registration. Coinbase has called for new rules specifically for crypto in the US to establish clear regulations instead of relying on enforcement actions.
France’s Positioning as a Technology Leader
France has positioned itself as a leader in technology under President Emmanuel Macron’s plan to make the country a global tech hub. The country has committed significant investments over five years to bolster its technological prowess. France is already home to major players in the crypto industry, including Ledger, Circle, Binance, and Crypto.com. The adoption of crypto assets in France is increasing, with 10% of adults currently owning crypto and 24% planning to engage in crypto activities in the next year.
Hot Take: Coinbase Expands Services in France Amidst Regulatory Challenges in the US
Coinbase’s registration with the French markets regulator marks a significant expansion for the cryptocurrency exchange in Europe. While facing challenges from US regulators, Coinbase is seizing opportunities in a more favorable regulatory environment in France. As European regulators work on harmonizing regulations through MiCA, crypto companies will have greater flexibility to operate across the EU. France’s commitment to technology and its growing adoption of crypto assets make it an attractive market for Coinbase and other industry players. This move highlights the importance of regulatory clarity for the crypto industry as companies seek stable operating environments.
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