Circle, Coinbase receives French regulatory approvals
French regulatory authorities As 2023 approaches, crypto exchange Coinbase and stablecoin issuer Circle are giving licenses to foreign cryptocurrency companies on December 21.
Coinbase has reportedly received a Virtual Assets Service Provider (VASP) license from France's financial regulator Autorité des Marches Financieux (AMF). Having a VASP registration ensures that a company complies with EU and international regulations.
With its license, Coinbase can hold digital assets, and offer and facilitate crypto trading in the country. In addition, the exchange recently announced crypto trading services for institutional foreign investors through its global arm, allowing customers outside the US to trade Bitcoin (BTC) and Ether (ETH) for USD Coin (USDC).
Meanwhile, Circle has received conditional registration as a Digital Asset Service Provider (DASP) subject to certain restrictions. To operate in France, the company still needs to be licensed as a Payment Service Provider (PSP). “This condition is satisfied that the electronic money institution to which Circle has applied has been licensed,” Circle wrote in a blog post.
We have reached a major milestone in the establishment of a European regulatory platform by securing conditional DASP registration in France and appointing Ms. Coralie Billman as Head of French Operations. Read more https://t.co/IAHY4L1hw8
— Circle (@circle) December 21, 2023
The approval comes at the end of a year that has seen significant regulatory changes and legal hurdles for crypto companies. Since June, the European Union has implemented the Markets in Crypto Assets Regulation (MiCA), a framework for regulating digital assets that are not regulated by existing financial services laws.
On the other side of the Atlantic, however, crypto companies are facing a tougher regulatory landscape with the United States Securities and Exchange Commission (SEC) leading lawsuits against crypto businesses. Coinbase, for example, was accused by the regulator in June of listing and trading crypto tokens that should be considered securities. According to Coinbase, the regulator overstepped its authority by classifying cryptocurrencies as securities.
The exchange seeks regulatory transparency from US courts for companies that operate digital assets. Coinbase has asked the SEC to create new regulations for handling cryptocurrencies in 2022. In the most recent development in this case, Coinbase appealed the regulator's decision on December 18 after rejecting the request.
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