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Coinbase Finds a Regulatory Base in EU as US Tightens Grip

Oct 19, 2023 - financemagnates.com
Facing regulatory challenges in the US, cryptocurrency exchange Coinbase has chosen Ireland as its primary global regulatory hub. The company has applied for a license from the Central Bank of Ireland, aiming to comply with the European Union's Markets in Crypto-Assets (MiCA) regulations, which are set to take effect in December 2024. If approved, Coinbase will be able to offer its services to all EU customers, reaching a potential base of 450 million people.

While Europe is creating a conducive regulatory environment for crypto businesses, the US is taking legal action against them. In June, the Securities and Exchange Commission (SEC) accused Coinbase of operating an unauthorized trading platform and a staking-as-a-service program without proper authorization. This followed similar charges against Binance, another leading crypto exchange.

Key takeaways:

  • Coinbase has chosen Ireland as its primary global regulatory hub amid regulatory challenges in the US and has applied for a license from the Central Bank of Ireland.
  • The move is in anticipation of the European Union's Markets in Crypto-Assets (MiCA) regulations, which will allow Coinbase to offer its services to all EU customers under "passporting" rights if it secures the license.
  • Coinbase has been operating in Dublin for over five years, making Ireland a natural choice for its EU regulatory hub.
  • In contrast to Europe's conducive regulatory environment, the US is taking legal action against crypto businesses, with Coinbase facing accusations from the SEC of running an unauthorized trading platform and a staking-as-a-service program without proper authorization.
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