Coinbase, a major cryptocurrency exchange based in the United States, has received approval from France's AMF watchdog to operate as a virtual asset service provider (VASP) in the country. This approval allows Coinbase to offer a range of digital currency services in France, including custody of digital assets, buying and selling digital assets using legal tender, trading digital assets against other digital assets, and operating a digital asset trading platform.
Regulators in France, like those in other European countries, are adapting to the emergence of cryptocurrencies and blockchain technology. They aim to balance the potential benefits of these technologies for improving payment systems and trading with the need to protect consumers. The European Union is also working on introducing the Markets in Crypto Assets (MiCA) regulation, which will provide a harmonized framework for crypto companies to operate across the EU.
The VASP registration represents a significant expansion for Coinbase in Europe, especially as the regulatory environment for cryptocurrencies in the United States becomes more uncertain. U.S. regulators have recently taken aggressive actions against crypto companies, with the Department of Justice reaching a settlement with Binance and the Securities and Exchange Commission (SEC) targeting Coinbase and Binance with lawsuits alleging illegal securities dealings.
Coinbase has responded to regulatory challenges in the U.S. by emphasizing its commitment to compliance with financial regulations. The company has called for new rules specifically tailored to the crypto industry to provide clarity and avoid what it sees as "regulation by enforcement."
France has been positioning itself as a leader in technology, with President Emmanuel Macron aiming to establish the country as a global tech hub. The French government has committed significant investments to support this goal, including subsidies and state funding. France is also home to several prominent crypto companies, including Ledger, a major provider of crypto custody services, and has seen increased adoption of cryptocurrencies among its population.
Despite recent price fluctuations and challenges in the crypto industry, France continues to see growing interest in cryptocurrencies. According to data from Toluna, 10% of French adults currently own crypto assets, and 24% plan to buy, sell, or trade crypto in the next 12 months.
In summary, Coinbase's registration with the French regulator marks a significant step in the company's expansion into Europe. It comes at a time of increasing regulatory scrutiny in the U.S. and highlights France's efforts to embrace cryptocurrencies and blockchain technology as part of its broader tech strategy.
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