Coinbase Expands into European Markets with VASP License Acquisition
Coinbase has strategically expanded its operations into European markets by acquiring a virtual asset service provider (VASP) license from the Financial Markets Authority (AMF) of France. This acquisition establishes Coinbase as a recognized participant in the French financial sector. According to CoinGecko, Coinbase is currently the third-largest cryptocurrency exchange based on trading volume, trailing only Bybit and Binance.
Coinbase Prioritizes Compliance
With the VASP license, Coinbase can now provide custody of digital assets, trade digital assets against legal tender, conduct digital asset transactions, and operate a digital asset trading platform. This move demonstrates Coinbase’s commitment to complying with legal requirements and building a reputable brand in global markets. While facing regulatory challenges in the US, Coinbase aims to be regulated in jurisdictions with established cryptocurrency laws.
“Obtaining VASP status in France allows us to continue our global growth while prioritizing asset security and compliance, and onboarding the next billion people into crypto,” said Daniel Seifert, Vice President and Regional Managing Director at Coinbase.
SEC Regulations and European Framework
The European Union is working on implementing the Markets in Crypto Assets (MiCA) regulation to establish a consistent framework for cryptocurrencies within the EU. However, SEC Chair Gary Gensler has taken a strict stance on crypto assets and digital asset service providers, considering most tokens as securities. Coinbase disagrees with this classification and has filed a rule-making plea with the SEC for transparent crypto regulations.
France’s Technological Ambitions
President Emmanuel Macron aims to position France as a global technology hub, aligning with Coinbase’s entry into the country. The French government has committed to investing 34 billion euros over five years in innovative sectors such as blockchain, cloud computing, and artificial intelligence.
Hot Take: Coinbase Expands Presence in Europe through VASP License Acquisition
Coinbase’s acquisition of a virtual asset service provider license from the Financial Markets Authority of France marks its strategic expansion into European markets. With this license, Coinbase can offer various services related to digital assets while complying with legal requirements. The move demonstrates Coinbase’s commitment to compliance and its goal of becoming a trusted player in the cryptocurrency industry globally. This expansion aligns with President Macron’s vision of positioning France as a leading center for technology and innovation. As regulatory discussions continue in both the US and Europe, Coinbase’s actions highlight the importance of adapting to evolving legal frameworks to foster growth and adoption in the crypto space.
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