Coinbase, a cryptocurrency exchange, has marked a European expansion by securing a virtual asset service provider (VASP) license in France. This development, confirmed by a company spokesperson, signals a major stride for Coinbase in extending its services in the European market. France’s AMF watchdog, recognizing the potential of digital currencies, has effectively given Coinbase the green light to operate its array of crypto services within the country.
Coinbase European Expansion Amid U.S. Regulatory Challenges
Amidst increasing regulatory pressures in the United States, Coinbase’s move into France represents a strategic shift in focus. The U.S. Securities and Exchange Commission (SEC) has been notably stringent with cryptocurrency firms, leading to heightened tensions. Coinbase, facing allegations from the SEC of engaging in illegal securities dealings, has countered these claims, advocating for clearer crypto-specific regulations in the U.S.
Coinbase’s European venture came when the U.S. Department of Justice took stern measures against crypto giants like Binance, resulting in substantial settlements and leadership changes. This contrast in regulatory environments underscores Coinbase’s decision to deepen its presence in Europe.
France as a Tech and Crypto Hub
Coinbase’s French expansion aligns with President Emmanuel Macron’s vision to transform France into a global technology hub. Under the “France 2030” initiative, the French government has allocated 34 billion euros in investments over five years. This investment bolsters France’s position in cutting-edge technologies, including artificial intelligence, cloud computing, and blockchain.
The country’s progressive stance on technology and digital assets has attracted several crypto firms, including Circle, Binance, and Crypto.com, which have established their European bases in Paris. The presence of major players like Ledger, a crypto custody service provider, further solidifies France’s burgeoning role in the crypto landscape.
Rising Crypto Adoption in France
Despite recent market downturns and industry challenges, France has witnessed a steady increase in cryptocurrency adoption. According to Toluna, a data firm, around 10% of French adults currently own crypto assets, and 24% plan to engage in crypto transactions within the next year.
Therefore, Coinbase’s entry into the French market with the VASP license comes at an opportune moment. This move enhances the company’s European presence and taps into French consumers’ growing interest and adoption of digital assets.
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