Coinbase Targets EU Expansion with Ireland as its New Regulatory Hub
Coinbase aims to secure a unified “MiCA license” in Ireland, enabling it to extend its services to Germany, France, Italy and Netherlands.
Coinbase, a leading cryptocurrency exchange, is pivoting its focus to Europe, choosing Ireland as its central operational and regulatory hub within the European Union. This move comes as company feels increased regulatory pressure in its home territory, the United States.
Coinbase has been familiar with the Irish terrain, having established its office in Dublin back in 2018, now employing roughly 100 individuals in the country.
The latest strategic decision comes on the heels of the company’s submission for a license under the EU’s upcoming Markets in Crypto-Assets (MiCA) regulation, which is expected to be operational by December 2024.
By securing the MiCA license, Coinbase aims to streamline its operations across major European markets such as Germany, France, Italy, and the Netherlands.
This “passporting” would allow Coinbase to introduce new products across these regions without navigating each country’s individual licensing procedure. Nana Murugesan, Vice President of International at Coinbase, expressed the company’s ambition to capitalize on this license from its inception.
The company is planning to be operational with its MiCA license from “day one”Nana Murugesan said
Coinbase’s Current Regulatory Landscape
Despite its U.S. roots, Coinbase is navigating stormy waters in its homeland, especially with the U.S. Securities and Exchange Commission (SEC) accusing it of operating an unauthorized securities platform. Coinbase counters these claims and emphasizes the need for distinct cryptocurrency legislation in the U.S.
Paul Grewal conveyed his concerns over the sluggish pace of crypto regulation in the U.S. He remains optimistic, however, about the future, as courts are starting to question the SEC’s interpretation of U.S. securities laws, especially concerning cryptocurrencies. Grewal highlighted the contrasting regulatory approach in Europe, where the focus remains on consumer protection.
Coinbase’s Expansion Vision
Europe holds a significant potential market for Coinbase, with the continent boasting a population nearing 450 million. Although Europe lags behind North America in terms of digital asset usage, Coinbase is optimistic about the growth potential. In recent financial disclosures, the company revealed that up to 20% of its revenue stems from Europe.
Exchange also announced its plans to enhance its presence in Germany, intending to make it their regional “talent hub” and enhance its product offerings tailored specifically for the German market.
Coinbase is focusing on an EU-based strategy. They are thinking about launching new crypto products in Europe. The priority is on daily uses. These include functions like payments.
They are prioritizing these over trading activities. Daniel Seifert holds a significant position at Coinbase. He is the Vice President of EMEA. Seifert gave some hints. These were about future integrations.
The integrations involve payment providers. The goal is to make it easy. Users should access digital tokens with ease. They should do this through Coinbase. He teased that the company has an array of exciting plans for Europe in the pipeline.
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