Coinbase and Circle Secure Crypto Licenses from French Regulators Amid Global Regulatory Shifts
Summary:
As 2023 concludes, French regulators have approved foreign cryptocurrency firms, Coinbase and Circle. Coinbase has secured the Virtual Assets Service Provider license from France's AMF, allowing it to custody and facilitate crypto trading in France. Circle has received a conditional license as a Digital Asset Service Provider and is awaiting approval as a Payment Service Provider. These approvals come amidst significant regulatory shifts globally for crypto firms, with Europe enforcing the MiCA framework and the U.S. implementing strict rules enforced by the SEC. Coinbase is currently seeking legal clarity on cryptocurrencies in the U.S.
As we approach the end of 2023, foreign cryptocurrency businesses are being approved by French regulators, with Coinbase cryptocurrency exchange and stablecoin provider Circle issued their licenses on 21st of December. Coinbase has successfully secured Virtual Assets Service Provider (VASP) approval from the Autorité des Marchés Financiers (AMF), France's financial watchdog. This VASP license ensures the company's adherence to both European Union and global guidelines. With this approval, Coinbase is permitted to safekeep digital assets and facilitate cryptocurrency trading within France. Furthermore, the firm recently extended cryptocurrency trading services to institutional foreign investors via its global division, allowing international clients to trade Bitcoin (BTC) and Ether (ETH) against USD Coin (USDC).
On the other hand, Circle has attained a conditional approval as a Digital Asset Service Provider (DASP), subject to certain stipulations. To launch operations in France, the company still needs to be approved as a Payment Services Provider (PSP). Circle plans to meet this demand by procuring an Electronic Money Institution license for which it has already applied. This development has been highlighted as a crucial preliminary achievement in establishing their regulatory framework in Europe and appointing Coralie Billmann as the Head of French Operations.
The approvals arrive after a year fraught with substantial adjustments in regulations and legal challenges for crypto businesses. Since June, the Markets in Crypto Assets Regulation (MiCA), which oversees digital assets unregulated by existing financial services laws, has been implemented by the European Union. Meanwhile, in the United States, crypto businesses are encountering a stricter regulatory environment, with the United States Securities and Exchange Commission (SEC) initiating legal action against crypto ventures. Coinbase, for instance, was sued in June for offering and trading cryptocurrency tokens that, according to the regulator, should be categorized as securities. However, Coinbase accuses the regulator of exceeding its mandate by classifying cryptocurrencies as securities. The firm is also appealing to U.S. courts for better clarity regarding regulations for companies dealing with digital assets. After its request to the SEC for updated rules for managing cryptocurrencies in 2022 was rejected, Coinbase appealed this decision on December 18.
Published At
12/21/2023 10:12:16 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.