In a bid to expand in Europe, Coinbase announced that it received a ‘key milestone’ in that journey by securing approval from the Italian regulators.
In a statement released on July 18, Coinbase stated that it will provide crypto services to Italian residents, adding, “The new requirement implemented by the Organismo Agenti e Mediatori (OAM), mandated that all companies offering crypto trading, custody or other services, meet set criteria.”
“We’re proud to be among the first companies to meet these benchmarks,” the note added.
Can Europe’s expansion help Coinbase’s performance?
The announcement comes at a time when Coinbase Global is losing its spot in the top 10 global list of digital-asset exchanges by volume, as per reports. Meanwhile, rumors that the exchange might be facing a liquidity crisis are gaining steam on the back of its decision to suspend its affiliate program.
Despite that, the Nasdaq-listed platform has unveiled its plans to expand in Europe, where it already has a presence in around 40 regions, including in Ireland, the UK and Germany. The blog post noted, “We are in the process of strengthening our presence across Europe and have registrations or license applications in progress in several major markets in compliance with local regulations.”
In the past months, Coinbase competitor Binance also announced approvals in several European countries. Notably, nations like Spain, France, and Italy recently gave a go-ahead to Binance to operate. However, the European Parliament and EU states’ recent decision to tighten crypto rules with the new Markets in Crypto-assets (MiCA) law can add obstacles to the expansion plans of these exchanges.
Subsidies by the Italian government
Nana Murugesan, Vice President of International and Business Development at Coinbase, said, “Building a constructive relationship with regulators in every jurisdiction in which we operate is incredibly important as we march toward our mission of increasing economic freedom in every corner of the world.”
“Gaining this regulatory approval is a testament to our close collaboration and positive working relationship with the Italian financial regulators,” Murugesan added.
The exchange plans to launch a Coinbase suite of retail, institutional, and ecosystem products across Europe.
Meanwhile, in Italy, the Ministry of Economic Development announced earlier this month that starting September, blockchain companies will be eligible to apply for a government subsidy program worth $46 million.
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