Bonjour la France: Coinbase Obtains VASP Registration in France!

tamir
Fri, 22 Dec 2023 13:28:45 +0000
AMF, Crypto, Coinbase, Emmanuel Macron

Coinbase, the largest U.S. crypto exchange, announced a significant regulatory milestone by obtaining a Virtual Asset Service Provider (VASP) registration in France. This development aligns with the company’s strategy to establish operations in countries with clear crypto policies, contrasting with its ongoing discussions with the U.S. Securities and Exchange Commission (SEC) for tailored regulations in the U.S.

Coinbase’s Expansion in France

Coinbase‘s VASP registration, granted by France’s Financial Markets Authority AMF, effectively authorizes the American exchange to offer a comprehensive range of services in the country. These services include digital asset custody, fiat-to-crypto transactions, digital asset trading, and operating a digital asset trading platform.

French President Emmanuel Macron’s commitment to transforming France into a hub for emerging technologies, including artificial intelligence and cryptocurrencies, facilitated this expansion. The President has allocated billions of euros in subsidies and state funding for these sectors.

Read more about the AMF registration of stablecoin issuer Circle.

Comparison with U.S. Regulatory Landscape

Coinbase‘s move into Europe, particularly France, came when the company faced a more challenging regulatory environment in the U.S. The firm has been advocating for specific rules from the SEC tailored to the crypto sector, a proposal that the regulatory body recently labeled as “unwarranted.” Meanwhile, Coinbase is focusing on jurisdictions with established regulatory frameworks for the crypto industry.

Apart from France, Coinbase holds licenses in other EU nations, including an e-money license in Ireland and registration in Spain. The company has identified Ireland as its EU hub and has also obtained operating licenses in Bermuda and Singapore. This regulatory compliance has positively influenced Coinbase‘s market performance, with its Nasdaq-traded shares seeing a significant rise.

France’s Growing Appeal to Crypto Firms

The regulatory clarity in France, underscored by the recent enactment of the EU-wide Markets in Crypto Assets (MiCA) legislation, is attracting various crypto entities.