Coinbase, the biggest American crypto Exchange, has decided to step into the European market by setting up shop in Spain, France, Italy and the Netherlands. The crypto heavyweight has already applied for licenses to operate in the aforementioned countries, which have high levels of crypto adoption, with the Netherlands being the most active, as revealed in an earlier report.
Coinbase Making Moves in Europe
The top American crypto exchange is already a fully established entity in the United Kingdom, as well as some other parts of Europe, including Germany and Ireland. The firm has also recently opened a branch in Switzerland.
Nana Marugesan, the vice president of Coinbase international affairs, claims that the company’s entry to the UK market back in 2016 set a good example for crypto innovation. “When we entered the UK and Europe, this was actually during the last bear market in 2015-2016. We entered, we made bets. I’m sure it was probably a tough time. But it’s paid off, significantly” Marugesan explained, painting an optimistic picture for the exchange’s upcoming European business ventures.
Troubles Amid the Crypto Crash
“No pain, no gain”, as the proverb says. Earlier this month, Coinbase elected to cut 18% of its staff in the United States, citing extreme market conditions for the decision. In the wake of the layoffs, social media was abuzz with rumors of Coinbase‘s impending bankruptcy, and the hypothetical question of what would happen to customers’ funds in such a case.
New Legislation Comes into Play
Coinbase is patiently awaiting the outcome of the EU’s MiCA guidelines, the fundamental legislation from the European Union that intends to collectively regulate crypto across all EU member states. Should Coinbase comply with the outlined standards, the exchange would be able to operate in all 27 countries in the EU; however, the legislation is not expected to come into effect until 2024.
On the Flipside
- Coinbase may be running from the dark cloud of setbacks that has been plagueing the company’s U.S. operations, resulting in the dramatic 18% staff cuts. Adding salt to the wound, many of those fired allegedly only found out from colleagues.
- Coinbase has been hit with a class-action lawsuit for reportedly listing 79 unlicensed coins.
Why You Should Care
The European Union reached a consensus on its new anti-money laundering laws, which require every crypto exchange in the zone to collect information about the users involved in each end of crypto trades.