Leading cryptocurrency exchange Coinbase has obtained registration as a Virtual Asset Services Provider (VASP) in France.
The licence is issued by the French Financial Markets Authority (‘Autorité des Marchés Financiers’ (AMF)).
Coinbase will now be able to offer a “full suite of retail, institutional, and ecosystem products and services” in the country’s domestic market.
The exchange seeks to provide services like the custody of digital assets, buying or selling digital assets in legal tender and trading of digital assets against other digital assets, to both retail and institutional users in the country.
Daniel Seifert, who acts as the Vice President and Regional Managing Director of EMEA at Coinbase, commented on the feat, saying:
“We’re focused on bringing the benefits of crypto to the world. Achieving VASP status in France allows us to continue to grow globally in the best possible way, onboarding the next 1 billion people into crypto while ensuring consumers’ 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 announcement was made on the same day as stablecoin issuer Circle was granted conditional registration as a digital asset service provider (DASP) in France.
However, unlike Coinbase, in order to start operations in the country, Circle will need to secure approval as a payment services provider (PSP) or registration as an agent of a PSP.
The lifting of this condition will be subject to Circle obtaining an Electronic Money Institution licence, which the stablecoin issuer has already applied for.
Go Deep, Go Broad
The VASP status acts as a step up for the exchange to expand its European services ahead of the introduction of Markets in Crypto Assets (MiCA) regulation in the region.
MiCA is a comprehensive legal framework for crypto-assets and related services within Europe. The legislation was signed into law in May this year and is expected to be in full effect by December 2024.
The adoption of MiCA by European Union policymakers represents a “pivotal moment for cryptocurrencies in the region”, said Coinbase. It provides regulatory clarity to the industry that is often left in the dark in other countries like the US.
Back in May, AMF officials offered to welcome crypto companies fleeing the uncertain environment of the US, advertising France with a regulatory framework of relative predictability.
France is also an “important market” for Coinbase. The latest approval marks another chapter of its “Go Deep, Go Broad” international expansion strategy.
The exchange seeks to help update the financial system by partnering with high-bar regulators from across all jurisdictions. Placing France as one of them, Coinbase said:
“France’s reputation as a country that innovates and attracts technological advancements is well-deserved. With its thriving tech and web3 startup ecosystem, supportive government initiatives, world-class educational institutions, advanced technological infrastructure, and vibrant cultural heritage, France has positioned itself as a global magnet for innovation.”
