France Grants Licenses to Coinbase, Circle

On December 21, French regulatory authorities granted licenses to cryptocurrency exchange Coinbase and stablecoin issuer Circle. These approvals come as the year 2023 draws to a close, and the French authorities are issuing authorization to overseas cryptocurrency enterprises.

According to reports, Coinbase has been granted authority to operate as a virtual asset service provider (VASP) by the Autorité des Marchés Financiers (AMF), which is France’s financial regulator. The possession of a VASP registration guarantees that a firm is in accordance with the legislation of the European Union as well as that of other countries.

Coinbase is now able to take custody of digital assets as well as provide and assist cryptocurrency trading within the country, thanks to the license.

Additionally, the exchange recently stated that it will be providing cryptocurrency trading services to institutional investors from other countries through its international arm.

These services will allow customers located outside of the United States to trade Bitcoin and Ethereum against USD Coin. During this time, regulators granted Circle a conditional registration as a Digital Asset Service Provider (DASP), subject to a number of restrictions.

It is still necessary for the company to obtain authorization as a Payment Services Provider (PSP) before it can begin operations in France. “This condition will be satisfied with the obtainment of an Electronic Money Institution license, for which Circle has applied,” Circle stated in a posting to its website.

The granting of approvals has begun at the close of a year distinguished by substantial regulatory changes and legal barriers for cryptocurrency companies. In June, the European Union started enforcing the Markets in Crypto Assets Regulation (MiCA), a framework that oversees digital assets not regulated by existing financial services regulations.

Cryptocurrency companies face a stricter regulatory environment across the Atlantic. The United States Securities and Exchange Commission (SEC) is leading cases against cryptocurrency enterprises. In June, the regulator took the cryptocurrency exchange Coinbase to court for listing and selling cryptocurrency tokens that it believes should be regarded as securities.

With the classification of cryptocurrencies as securities, the regulatory body allegedly exceeded the scope of its power, as stated by Coinbase. An additional objective of the exchange is to obtain regulatory clarity from the courts of the United States for businesses that deal with digital assets.

In 2022, Coinbase made a request to the Securities and Exchange Commission (SEC) to develop new regulations regarding the processing of cryptocurrency. On December 18th, Coinbase filed an appeal against the judgment made by the regulatory body after it denied the request. This is the most recent event in this context.