France becoming EU’s crypto hub?

Paris: France is becoming a favorite for crypto firms as Coinbase becomes the latest to obtain a visual asset service provider (VASP) registration in the country. With this, the American exchange can offer its “full suite of retail, institutional, and ecosystem products and services to users in France.”

The confirmation from Coinbase yesterday (Thursday) came on the same day Circle, a stablecoin issuer, announced its VASP registration in France. Coinbase is a stakeholder in Circle, known for its USD-pegged USDC stablecoin.

“Achieving VASP status in France allows us to continue to grow globally in the best possible way, onboarding the next 1 billion people into crypto while ensuring consumer’s assets are secure and that compliance is prioritized,” said Daniel Seifert, the Vice President and Regional Managing Director, EMEA at Coinbase.

“France has a thriving web3 ecosystem, and we are excited at the prospect of contributing to it,” he added.

Indeed, according to a survey by Toluna, 20 percent of French adults hold cryptocurrencies, and another 24 percent want to get the asset class in the next 12 months. This data shows that the demand for cryptocurrency is high in that country.

The regulatory clarity in France additionally encouraged many other crypto brands to get registration in the country. Binance, the largest global crypto exchange in terms of trade volume, also has a French registration. However, it is reportedly facing a probe in the country.

Coinbase, fighting the American securities market regulator in courts, is strengthening its presence in the European Union. The Nasdaq-listed company is regulated in Germany, Ireland, the Netherlands, Spain, and Italy. It has made Germany its talent hub and has identified Ireland as its primary global regulatory hub.

With incoming Markets in Crypto-Assets (MiCA) regulations in the EU bloc, many big trading brands are setting up regional operations. Recently, Robinhood launched its cryptocurrency trading operations in the EU. However, the crypto laws in the UK have forced a few companies to partially suspend their offerings.