By George Ward
France Green Lights Circle And Coinbase License Registration
Recent reports indicate that the request of Coinbase and Circle, two international cryptocurrency exchanges, was given the green light by the French regulator – the Autorité des Marchés Financiers. Based on the approval notice, Coinbase is authorized to serve as a Virtual Assets Service Provider (VASP).
This official recognition proves the firm’s compliance with rules set down by the EU and other international bodies. Accordingly, Coinbase can make cryptocurrency easily accessible and trading easier in France.
Furthermore, clients outside the US can now trade Bitcoin (BTC) and Ether (ETH) using USD Coin (USDC), as the company’s international division has broadened its offerings for institutional foreign investors.
Furthermore, Coinbase can offer a safe place for customers to keep their crypto assets safe and a marketplace for digital asset transactions. Nevertheless, the global acceptability and regulation of cryptocurrencies remain on the rise, and this step is in line with the recent approvals.
Circle Secures Conditional Approval
On the other hand, Circle’s registration as a Digital Asset Service Provider is conditional and comes with some restrictions. According to Circle’s blog post, the firm has already applied for an Electronic Money Institution license, which is a necessary step for it to become a full payment service provider in France.
The EU implemented the Markets in Crypto-Assets Regulation (MiCA) in June 2023. The MiCA legislation aims to bring digital assets into the purview of current financial services. Regulatory compliance for crypto-related enterprises keeps evolving, thus the provisional registration given to Circle is a sign of these regulatory changes.
Therefore, Circle must obtain the Electronic Money Institution license before it can expand its activities within France. This involves a proven dedication to conforming to the standards established by regulatory bodies, in line with the evolving EU legislative framework for services about digital assets.
America’s Crypto Regulatory Debacle
The US Securities and Exchange Commission (SEC) is aggressively pursuing legal actions against crypto enterprises, adding another layer of difficulty to the regulatory environment.
For instance, the US regulator hit Coinbase with a lawsuit in June over how it dealt with some cryptocurrency tokens that the SEC considered as securities. Coinbase claims that the SEC’s decision to classify these digital assets as securities exceeds its authority.
Nevertheless, Coinbase has been consulting with relevant bodies to clarify the regulations that govern digital asset services. One of the solutions proposed by the crypto firm is for new cryptocurrency management regulations to be set by the SEC.
Following the rejection of this request, Coinbase appealed the regulator’s judgment, adding a twist to this continuing legal battle. The disagreement between the crypto platform and the regulatory agency is an indication of a larger problem in the industry.