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- 1 Coinbase, a leading cryptocurrency, secured a VASP license in France.
- 2 The license will allow the crypto exchange to offer digital currency services and buy and sell crypto assets.
- 3 The VASP license in any EU nation will enable the company to function in all the EU markets.
Coinbase, a leading cryptocurrency centralized exchange, secured a crypto license in France; the approval will allow the exchange to offer custody of digital assets.
AMF regulators of France gave Coinbase the status of Virtual Asset Service Provider (VASP), which is a green signal to the exchange to operate a digital currency service in France.
As per the official statement of Coinbase, this license will help the exchange to serve crypto enthusiasts and offer them a trading platform for digital assets. Crypto asset services providers (CASPs) wishing to serve EU clients are required by MiCA, which will be enacted in April 2024, to get a license from national authorities.
The VASP registration is a significant step towards Coinbase’s European expansion outside of the United States. This expansion is critical, as the exchange must contend with an increasingly unpredictable regulatory landscape.
MiCA Regulation Explained….
As per analysts, the licensing process in European Union nations has surged significantly because of the MiCA regulation, which is likely to be fully implemented in 2024.
Crypto firms will soon be able to utilize their VASP license in one nation and “passport” into other countries to sell their services across the EU instead of needing to gain registration in every EU market.
There are 28 nations in the European Union, and analysts suggest that MiCA will facilitate the entry of EU nations in the race to become crypto hubs.
Why SEC Interference in the Crypto Market?
In the wake of the bankruptcy of cryptocurrency platforms, including FTX, BlockFi, Voyager Digital, and others, the U.S. Securities and Exchange Commission (SEC) stepped up its efforts to bring these markets under the purview of all financial rules.
On the other hand, one of the reasons behind the shift of interest of crypto companies from the United States to other nations is the immense SEC pressure over their digital assets business.
Over the past few years, dozens of leading crypto-related companies left the U.S. due to lawsuits for operating digital assets trading platforms and several other products. Coinbase has also challenged the SEC to enact clear rules for the crypto market rather than ruling it with power.
The SEC took 24 steps to enforce laws pertaining to cryptocurrencies in just the first half of 2023.
Although the volatility has been high, the sharp increase in the value of several cryptocurrencies has presented a chance for substantial rewards.
The cryptocurrency market is being seen as a high-reward investment avenue when diversifying a portfolio and hedging against traditional financial market risks during periods of economic instability or reduced interest rates.
Disclaimer
The views and opinions stated by the author or any people named in this article are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
