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- Coinbase is celebrating its expansion into France after its approval as a Virtual Asset Services Provider (VASP) by the regulatory agency.
- France is emerging as a crypto hub in Europe after introducing crypto-friendly policies to attract firms.
Coinbase is ending the year with an expansion into the European market. Earlier this month, Coinbase confirmed it had received approval as a Virtual Asset Services Provider (VASP) from the French Financial Markets Authority (AMF). Coinbase will now be expanding its crypto services in the European market as it implements its global expansion strategy.
Some of the key services the American publicly traded company that operates a cryptocurrency exchange platform plans to offer include custody of digital assets, buying, selling, and trading crypto tokens. Its choice to seek approval in France comes as no surprise with the country leading in crypto adoption. A recent survey shows that 10% of French adults own crypto assets. Furthermore, 24% plan to buy, sell, and or trade cryptocurrency in the next 12 months.
Bonjour la France. 🇫🇷
We’ve received approval in France as a registered VASP. This is an important market for us and represents another chapter in our Go Deep, Go Broad international strategy.
Learn more: https://t.co/OGiAcSyY3c pic.twitter.com/Z50oojEWV3
— Coinbase 🛡️📞 (@coinbase) December 21, 2023
Daniel Seifert, Vice President, and Regional Managing Director, EMEA at Coinbase spoke on the expansion, adding that it was in line with its goals to “onboarding the next 1 billion people into crypto while ensuring consumer’s assets are secure and that compliance is prioritised. France has a thriving web3 ecosystem and we are excited at the prospect of contributing to it.”
The European Commission has recently introduced the Markets in Crypto Assets Regulation (MiCA) to bring clarity and oversight to the rapidly evolving digital asset market. This has been a key factor for crypto firms to expand into the region. For Coinbase in particular, its expansion into a crypto-friendly territory is timely, as it faces regulatory hurdles in the U.S. Earlier this year, the U.S. Securities and Exchange Commission (SEC) sued the exchange over listing tokens that it perceives to be unregistered securities. Earlier this year, Coinbase CEO Brian Armstrong revealed that the SEC had pressured the exchange into delisting all cryptocurrencies except Bitcoin.
The SEC has been adamant that a majority of tokens trading in the market are unregistered securities trading illegally. In a high-profile case, the regulatory agency has gone as far as suing Ripple for issuing XRP tokens. However, it has been increasingly evident that the agency will lose its case, setting a precedence in the industry.
Recent legal troubles for Binance in the U.S. well as the collapse of FTX have played into Coinbase’s hands. Two of its competitors in the region, the exit of the platforms has paved the way for Coinbase to emerge as the market leader. By seeking regulatory approval, the exchange has taken a cautious approach that ensures its long-term success. As CNF recently reported, this has proven profitable in 2023, with its share prices surging 400%.
