- Coinbase obtains Virtual Asset Service Provider (VASP) authorization from France’s financial regulator, the AMF, enabling it to operate in the country.
- Emmanuel Macron French President is working to establish France as a major hub for cutting-edge technologies such as AI and crypto, with substantial funding and backing.
- Despite regulatory scrutiny in the US, Coinbase’s expansion into Europe is a strategic big move.
Cryptocurrency exchange Coinbase has secured a major regulatory win in Europe, as it has received approval from the French markets regulator, the Autorité des marchés financiers (AMF). The AMF’s virtual asset service provider (VASP) registration allows Coinbase to offer a range of digital currency services in France.
Custody of Digital Assets
This approval from French regulators enables users to securely store their digital assets with Coinbase, providing them with a secure and convenient way to manage their cryptocurrency holdings. Coinbase allows users to buy and sell digital assets using traditional fiat currencies such as euros or dollars. This service provides users with a simple way to enter and exit the cryptocurrency market.
Enabling Cross-Pair Trading
VASP approval Enables Coinbase users to offer a range of services including custody, buying and selling of digital assets, trading, and operating a digital asset trading platform. This move comes as European regulators grapple with the emergence of new technologies like crypto and blockchain, balancing their potential benefits in improving payment systems and trading with consumer protection. The AMF’s decision to register Coinbase is a positive step towards greater regulatory clarity in the region, which could pave the way for further growth and innovation in the crypto industry.
France’s Huge €34bn Investment
France is emerging as a leader in the crypto space, with the country’s commitment of €34 billion ($36.5 billion) over five years as part of its “France 2030” plan. This investment includes subsidies and state funding for technologies such as Web3. Ledger, one of the largest providers of crypto custody services, is based in France, and companies like Circle, Binance, and Crypto.com have also established European bases in Paris.
To Conclude, even after recent crypto price drops due to bankruptcies and collapses, Toluna data shows that 10% of French adults currently own crypto assets, with 24% planning to buy, sell, or trade crypto in the next year. This growing adoption highlights France’s position as a major player in the global tech hub race led by President Emmanuel Macron.