RACING TO KEEP UP THE PACE AGAINST ITS RIVALS, COINBASE SEEKS TO GET LICENSES TO OPERATE WITHIN EUROPE COUNTRIES!
As part of an ambitious development in the region, Coinbase is applying for licenses with numerous nations in Europe.
According to Nana Murugesan, vice president of international at Coinbase, the exchange already has a significant presence in the United Kingdom, Ireland, and Germany. It also plans to open offices in Spain, Italy, France, the Netherlands, and Switzerland. According to him, Coinbase recently hired its first employee in Switzerland.
In light of concerns over an ongoing “crypto winter,” the American cryptocurrency powerhouse is looking to global markets to fuel development. Coinbase said earlier this month that it would reduce its employment by 18%. Other companies like Gemini and BlockFi have followed suit as the price of cryptocurrencies has fallen.
Nonetheless, Murugesan states that Coinbase intends to hire a regional manager to oversee its European operations. In addition, following rapid growth, the company focuses on “mission-critical roles” such as security and compliance.
According to Katherine Minarik, Coinbase’s vice president of legal, the company is in talks with several countries, including France, to obtain anti-money laundering approval.
The company is preparing for MiCA, or Markets in Crypto-Assets, a landmark piece of EU legislation that aims to harmonize crypto regulation across the EU.
To try and agree on the regulations, representatives from the European Council and Parliament are scheduled to meet on Thursday. If all goes according to plan, MiCA should take effect by 2024.
If allowed, Coinbase will be able to “passport” its services into each of the 27 EU countries, according to Minarik.
Coinbase reported a 27 percent drop in revenue in the first quarter as overall platform usage fell. Currently, the company is heavily reliant on trading fees. However, it hopes to expand into new products such as nonfungible tokens and interest-like rewards known as staking.
Coinbase has approximately 9.2 million monthly transacting users worldwide. Still, less than half of those use the app for trading, according to Murugesan.