Coinbase Chooses Ireland as its Regulatory Hub to Obtain MiCA License, Aims to Expand Services in the European Union
Date: 2023-10-19 Author: Dima Zakharov Categories: IN WORLD
Coinbase Chooses Ireland as its Regulatory Hub for MiCA License
Cryptocurrency exchange Coinbase has applied for a license with the Central Bank of Ireland under the EU MiCA (Market in Crypto Assets) law. This move is driven by Coinbase's desire to strengthen its position in Europe and navigate the regulatory uncertainty in the United States. Ireland was chosen as the regulatory hub due to its favorable political environment for fintech industry development.
Coinbase already has an office in Dublin, opened back in 2018, but until now, the exchange only had registration as a provider of virtual asset services (VASP) in Ireland. If the application is approved by the Central Bank of Ireland, Coinbase will obtain a universal MiCA license. This will allow the exchange to passport its services to other European Union countries, including Germany, France, Italy, and others.
Coinbase and Regulatory Pressure
In the United States, Coinbase has faced regulatory pressure, including from the Securities and Exchange Commission (SEC). In June, the SEC filed a lawsuit against the exchange, claiming it had never been registered as a stock exchange. The document also alleged that Coinbase traded a range of assets that should have been registered with the SEC.
In July, the SEC demanded that Coinbase cease trading in all cryptocurrencies except Bitcoin. However, the exchange refused to comply with this initiative. These events have created a certain tension between the exchange and American regulators.
In response to regulatory pressure in the United States, Coinbase is actively seeking opportunities for expansion in Europe. One such step was obtaining registration with the Bank of Spain in September 2023, indicating the exchange's compliance with anti-money laundering requirements.
Coinbase has also decided to remove several trading pairs with the Tether (USDT) stablecoin and other assets that were not popular among clients. This move demonstrates the exchange's ongoing adaptation to changing market conditions.
