Facing
challenges in the US, crypto exchange Coinbase has identified its primary
global regulatory hub as Ireland. The platform has already applied for a
license from the Central Bank of Ireland, aiming to align with new European
regulations set to take effect in December 2024.
As the US
tightens regulatory measures on cryptocurrency companies and the future of the
market in the country remains uncertain, Coinbase has started looking for
alternatives.
The
European Union’s (EU) Markets in Crypto-Assets (MiCA) regulations, which will
come into effect at the end of last year, are expected to provide such. If
Coinbase secures a license from Ireland’s central bank, it will be able to offer
its services to all EU customers under “passporting” rights, opening
up to a base of 450 million people.
Why Ireland
over France, Germany, or Italy? In a conversation with CNBC, who first reported
the news, Coinbase revealed that it has been operating its office in Dublin for
over five years, employing a team of more than 100 professionals there. Ireland
was, therefore, a natural choice.
Coinbase picks Ireland as its main EU regulatory hub as U.S. authorities go on the offensive https://t.co/prQTysNsQR
— CNBC (@CNBC) October 19, 2023
Coinbase is
confident it will secure a license in Ireland and be prepared from day one when
MiCA regulations come into effect, Nana Murugesan, the Vice President of
Coinbase’s International Operations, said to CNBC.
MiCA and
Legal Challenges in the US
MiCA establishes a standardized
regulatory landscape for digital assets throughout the European Union.
Officially sanctioned in May 2023, this groundbreaking crypto law is slated to
be implemented in December 2024, with a potential transition period extending
to July 2026, depending on the individual EU member state.
The Council has just adopted the first-ever EU rules on markets in crypto-assets and services.
The new regulation aims to improve transparency, preserve financial stability and increase consumer protection while fostering innovation. #DigitalFinanceEU #MiCA
— EU Council (@EUCouncil) May 16, 2023
The regulation aims
to safeguard European consumers, promote environmental sustainability, and
combat money laundering in the crypto sector. It mandates that digital asset
exchanges and wallet providers secure a license to operate in any EU country
and requires stablecoin issuers to maintain adequate reserves.
While
Europe fosters a conducive regulatory environment for crypto businesses,
the United States is taking legal action against them. In June, the two largest
US-based exchanges, Binance and Coinbase, received lawsuits. The Securities and Exchange Commission (SEC) has accused Coinbase of running an
unauthorized trading platform that offered unregistered digital asset
securities. The SEC also alleges that Coinbase operated a staking-as-a-service
program without proper authorization.
Today we charged Coinbase, Inc. with operating its crypto asset trading platform as an unregistered national securities exchange, broker, and clearing agency and for failing to register the offer and sale of its crypto asset staking-as-a-service program.https://t.co/XPG2gDkxtV pic.twitter.com/hCdVMw8B2v
— U.S. Securities and Exchange Commission (@SECGov) June 6, 2023
This legal action against Coinbase followed
closely on the heels of charges against Binance, the world’s leading crypto
exchange by trading volume, for allegedly running an illegal operation.
Facing
challenges in the US, crypto exchange Coinbase has identified its primary
global regulatory hub as Ireland. The platform has already applied for a
license from the Central Bank of Ireland, aiming to align with new European
regulations set to take effect in December 2024.
As the US
tightens regulatory measures on cryptocurrency companies and the future of the
market in the country remains uncertain, Coinbase has started looking for
alternatives.
The
European Union’s (EU) Markets in Crypto-Assets (MiCA) regulations, which will
come into effect at the end of last year, are expected to provide such. If
Coinbase secures a license from Ireland’s central bank, it will be able to offer
its services to all EU customers under “passporting” rights, opening
up to a base of 450 million people.
Why Ireland
over France, Germany, or Italy? In a conversation with CNBC, who first reported
the news, Coinbase revealed that it has been operating its office in Dublin for
over five years, employing a team of more than 100 professionals there. Ireland
was, therefore, a natural choice.
Coinbase picks Ireland as its main EU regulatory hub as U.S. authorities go on the offensive https://t.co/prQTysNsQR
— CNBC (@CNBC) October 19, 2023
Coinbase is
confident it will secure a license in Ireland and be prepared from day one when
MiCA regulations come into effect, Nana Murugesan, the Vice President of
Coinbase’s International Operations, said to CNBC.
MiCA and
Legal Challenges in the US
MiCA establishes a standardized
regulatory landscape for digital assets throughout the European Union.
Officially sanctioned in May 2023, this groundbreaking crypto law is slated to
be implemented in December 2024, with a potential transition period extending
to July 2026, depending on the individual EU member state.
The Council has just adopted the first-ever EU rules on markets in crypto-assets and services.
The new regulation aims to improve transparency, preserve financial stability and increase consumer protection while fostering innovation. #DigitalFinanceEU #MiCA
— EU Council (@EUCouncil) May 16, 2023
The regulation aims
to safeguard European consumers, promote environmental sustainability, and
combat money laundering in the crypto sector. It mandates that digital asset
exchanges and wallet providers secure a license to operate in any EU country
and requires stablecoin issuers to maintain adequate reserves.
While
Europe fosters a conducive regulatory environment for crypto businesses,
the United States is taking legal action against them. In June, the two largest
US-based exchanges, Binance and Coinbase, received lawsuits. The Securities and Exchange Commission (SEC) has accused Coinbase of running an
unauthorized trading platform that offered unregistered digital asset
securities. The SEC also alleges that Coinbase operated a staking-as-a-service
program without proper authorization.
Today we charged Coinbase, Inc. with operating its crypto asset trading platform as an unregistered national securities exchange, broker, and clearing agency and for failing to register the offer and sale of its crypto asset staking-as-a-service program.https://t.co/XPG2gDkxtV pic.twitter.com/hCdVMw8B2v
— U.S. Securities and Exchange Commission (@SECGov) June 6, 2023
This legal action against Coinbase followed
closely on the heels of charges against Binance, the world’s leading crypto
exchange by trading volume, for allegedly running an illegal operation.