France’s regulator has registered Coinbase as virtual asset service provider

What’s new? The French Financial Markets Authority (AMF) has registered crypto exchange Coinbase as a virtual asset service provider (VASP). The registration will allow Coinbase to offer a full suite of retail, institutional, and ecosystem products and services to local customers, including buying, selling, and storing cryptocurrencies, as well as trading them in pairs with other digital assets. Under the EU’s single EU-wide Markets in Crypto Assets (MiCA) Act, a company need only obtain a license in one of the bloc’s countries to operate throughout its territory. MiCA will come into effect at the end of next year and will finally come into force by mid-2026.

Press release

What else is known? Coinbase has cited France as an important market for it, and obtaining registration is another step in its international expansion strategy. Indeed, according to a Toluna survey, 10% of French adults own crypto assets, and another 24% plan to transact in the next 12 months. About 60% of respondents believe that the global financial system is unfair and contributes to the enrichment of those with power. Coinbase said it is looking to partner with regulators in various countries to update it.

Representatives of the exchange noted the efforts of the French authorities to stimulate innovation in the Web 3.0 sector. In particular, the government will allocate 34 billion EUR for subsidies to technology startups (including Web 3.0) until 2030.

At the same time, Coinbase has previously selected Ireland as the main hub for MiCA. The regulatory clarity provided by MiCA shows that the region recognizes the potential of new technologies, the company concluded.

Earlier, an interim license from the French regulator was also granted to Coinbase’s partner company: Circle, which issues USDC, the second-largest capitalization stablecoin.

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Coinbase announced that it would focus on expanding its business outside of the US in September of this year. The company has faced increased pressure from the US securities regulator SEC and is currently in litigation with it over a lawsuit over trading in unregistered investment contracts.

At the same time, the company has not abandoned its efforts to lobby the industry: in Q4, it, along with other crypto firms in the US, gave $78 million to support friendly candidates in the 2024 election cycle. The exchange once again ranked first in terms of lobbying spending.