Cryptocurrency exchange Coinbase has recently acquired registration with the French markets regulator, a significant development that allows the company to enhance its services in another key European market. This approval signifies a green light from France’s AMF watchdog for Coinbase to operate digital currency services within the country.
The VASP registration obtained by Coinbase enables the platform to offer a range of services including custody of digital assets, buying and selling of digital assets using legal tender, trading digital assets against other digital assets, and operating a digital asset trading platform. This approval demonstrates Coinbase’s commitment to expanding its presence in Europe, particularly at a time when the regulatory landscape in its home country, the United States, is uncertain.
Within the United States, authorities have taken tough actions against crypto companies in recent months. For instance, the U.S. Department of Justice reached a settlement with crypto giant Binance, resulting in the payment of over $4 billion in settlements and the resignation of its CEO due to a felony charge related to money laundering prevention failures. The Securities and Exchange Commission (SEC) has also pursued aggressive measures against the crypto sector, initiating lawsuits against Coinbase and Binance for alleged illegal securities dealings. The SEC’s classification of several crypto tokens as securities requires these companies to seek registration and adhere to stricter financial regulations.
Coinbase has responded to the SEC’s actions by asserting its compliance with financial regulations and advocating for new rules specifically designed for the crypto industry in the United States. The company aims to move away from a model of “regulation by enforcement” and establish clear regulatory guidelines to protect both companies and investors in the digital asset space.
France has been actively positioning itself as a global leader in technology, emphasizing its expertise in artificial intelligence, cloud computing, and other emerging fields. President Emmanuel Macron’s “France 2030” plan aims to make the country a hub for technology and innovation. As part of this initiative, France has committed 34 billion euros ($36.5 billion) in investments over five years to foster technological development, including in the realm of cryptocurrencies. Furthermore, France is already home to prominent crypto industry players such as Ledger, a major provider of crypto custody services, and has attracted companies like Circle, Binance, and Crypto.com to establish their European bases in Paris.
Despite the volatility and instability of cryptocurrency prices, France has witnessed increased adoption and interest in crypto assets. According to data from Toluna, 10% of French adults currently own crypto assets, while 24% plan to engage in buying, selling, or trading crypto in the next 12 months. This growing trend highlights the potential for further expansion and innovation in the French crypto market.
Meanwhile, the European Union is working towards introducing the Markets in Crypto Assets (MiCA) regulation, which aims to establish a standardized framework for crypto companies to operate legally and regulated across the bloc. Once implemented, companies with VASP licenses will have the opportunity to “passport” their services from one EU country to another without the need for additional registrations. MiCA not only streamlines regulatory processes but also ensures the protection of consumers and investors participating in the crypto market.
Coinbase’s registration with France’s AMF regulator marks a significant milestone in the expansion of the company’s services in Europe. The approval allows Coinbase to operate as a virtual asset service provider, offering various digital currency services within France. As the regulatory landscape evolves and European countries, like France, embrace cryptocurrencies, the crypto industry can anticipate increased innovation and adoption across the continent.
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