Coinbase Obtains Virtual Asset Service Provider (VASP) Approval in France
In Brief
Coinbase received VASP approval in France, enabling it to provide custody services for digital assets, as well as trading in the country.
Cryptocurrency exchange Coinbase received virtual asset service provider (VASP) approval from French Financial Markets Authority (AMF). The VASP registration will enable Coinbase to provide custody services for digital assets, facilitate the buying or selling of digital assets in legal tender, engage in the trading of digital assets against other digital assets, and operate a digital asset trading platform in France.
The acquisition of the VASP licence signifies a strategic move for US-based Coinbase to expand its presence in Europe, particularly given the uncertain regulatory environment it currently faces in its home country.
Coinbase is the third-largest cryptocurrency exchange in trading volume, as reported by CoinGecko, with only Binance and Bybit surpassing it in this regard.
Crypto Regulatory Landscape in European Union
French regulators, as their European counterparts, are adapting to the rise of new technologies such as cryptocurrency and blockchain, balancing its potential in enhancing payment systems and trading while ensuring consumer protection.
In the European Union, efforts are underway to introduce the Markets in Crypto Assets (MiCA) regulation that aims to establish a unified framework, enabling cryptocurrency companies to operate in a regulated manner within the bloc.
Under MiCA, rather than seeking registration in every European Union market, cryptocurrency companies will eventually have the option to utilize their VASP license in one country and “passport” into other countries, offering their services across the European Union.
France’s Steady Advances in Web3
France aims to position itself as a technology leader. As part of its “France 2030” plan, the country committed $36.5 billion in investments, including subsidies and state funding over five years, with the objective of becoming the leader in “Web3.”
The country is home to Ledger, a major provider of crypto custody services, currently valued at $1.4 billion. Additionally, Circle, Binance and Crypto.com have chosen Paris as their European base.
The announcement of Coinbase’s approval coincided with stablecoin issuer Circle receiving conditional registration from the regulator. This development aligns with France’s efforts to attract more cryptocurrency businesses to the country.
Coinbase’s VASP approval in France and the alignment with Circle’s registration reflect France’s strategic push to lead in regulatory advancements and technological innovation within the global landscape.
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
