Coinbase Receives Regulatory Approval in France
Coinbase has obtained a virtual asset service provider (VASP) license from France’s Financial Markets Authority (AMF) to operate as a digital asset trading venue in the country. This approval allows Coinbase to offer services such as crypto trading, crypto-fiat pairs, and crypto custodial services in France.
European Crypto Regulation
The timing of this regulatory approval is significant as the European Union’s Market in Crypto-Assets (MiCA) directive is set to come into effect soon. The MiCA framework will replace individual digital asset regulations within EU member states, allowing approved companies like Coinbase to provide services across the entire bloc.
Uncertain Regulatory Environment in the US
This VASP registration for Coinbase comes amid a regulatory landscape that remains uncertain in the United States. The Securities and Exchange Commission (SEC) has previously sued Coinbase and other exchanges for allegedly operating as unregistered securities exchanges. The SEC’s classification of most tokens as securities has been met with disagreement from Coinbase and other crypto entities.
Circle’s Conditional Registration
Circle, another cryptocurrency company, has also secured a conditional registration with the French AMF. However, Circle still needs approval as a payment services provider or registration as an agent of a payment services provider to complete the process.
Coinbase CEO’s Response
In response to the SEC’s decision not to establish customized regulations for digital assets, Coinbase CEO Brian Armstrong expressed satisfaction that the decision forced the SEC to formally respond. Armstrong sees it as a step closer to regulatory clarity and questions why the SEC is hesitant to address outstanding regulatory questions in the crypto industry.
Hot Take: Coinbase Expands Into France With Regulatory Approval
Coinbase’s acquisition of a VASP license from the French AMF allows the company to expand its operations into France. This comes at a crucial time in European crypto regulation, as the MiCA directive is about to take effect. While facing an uncertain regulatory environment in the US, Coinbase continues to navigate the legal landscape and advocate for clearer regulations. With Circle also securing a conditional registration, it seems that crypto companies are positioning themselves to thrive within the evolving regulatory framework.
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