Austrian cryptocurrency exchange and trading platform Bitpanda will be working with Coinbase Crypto exchange to connect America’s largest exchange with European banks.
The move is the latest effort by Coinbase Crypto exchange to expand overseas following the United States regulatory war on cryptocurrency. The partnership will allow Coinbase Crypto exchange to use Bitpanda’s business infrastructure layer to connect directly to banks and fintech firms.
Furthermore, Coinbase Crypto exchange will become a liquidity provider for Bitpanda Technology Solutions (BTC), the firm’s “investing-as-a-service” division.
This will enable the platform’s institutional clients to integrate trading infrastructure and offer their own clients cryptocurrency financing and custody tools, reports by reports.
Plenty of banks, including Austrian Raiffeisenlandesbank, German neobank N26, the French fintech company Lydia, and United Kingdom financing company Plum, are already using the service.
Coinbase Crypto exchange Branching Out
Reports by BitPanda COO Lukas, Enzersdorfer-Konrad, the rollout of Europe’s MiCA regulations will enable banks to offer cryptocurrency services to customers. Banks can see how much of their customer funds have been flowing into cryptocurrency corporations, he informed CoinDesk before adding:
“They understand how much business they are missing out on, and likewise how much more of their customer base would do that business, if they had enough trust in the process.”
“Bitpanda and Coinbase Crypto exchange share an ambition — to make investing in digital assets safe and secure in a regulated way,” he added.
Guillaume Chatain, Coinbase’s head of institutional sales EMEA and APAC, stated that the company was working hard to “update the financial system by building trusted products that enhance the utility and adoption of crypto.”
Coinbase Crypto exchange is facing increasing regulatory pressure on its home turf in the United States following the threat of legal action from the Securities and Exchange Commission in March.
Its petition requesting more clarity on cryptocurrency regulations has been rebutted by the SEC, which asserts that securities laws are already in place and there is no need for new legislation for the new investment class.
Along with its European expansion ambitions, Coinbase Crypto exchange has likewise been granted a license to operate in Bermuda as it gradually starts to branch away from the harsh environment at home. The company is likewise seeing as the United Arab Emirates (UAE) as a potential strategic hub for its international operations.
Cryptocurrency Market Outlook
Cryptocurrency markets have fallen sharply today, with a 3.3 percent decline in total capitalization dropping levels below support. In doing so, the total cap has dropped to a two- 30 days low of $1.14 trillion.
Bitcoin (BTC) has dropped to $26,068 following a 4 percent slide, while Ethereum (ETH) was down to $1,778 after shedding 3.7%.