The introduction of cryptocurrency is another step closer following the agreement by the Dutch regulator to expand across the EU. American cryptocurrency platform Coinbase continues its rapid European expansion following approval from regulatory authorities in the Netherlands. This makes Coinbase the first major global crypto exchange to register with De Nederlandsche Bank.
Last month, Coinbase officially announced that it has received registration from De Nederlandsche Bank (DNB). The regulatory approval enables Coinbase to offer retail and institutional cryptocurrency products in the Netherlands. A major breakthrough in the adoption of cryptocurrency in the Netherlands and Europe.
Coinbase is one of the biggest platforms where you can buy cryptocurrencies. What many people do not know is that it is also possible to invest in crypto without opening an account on a cryptocurrency exchange. You can do this on a trading platform.
According to DNB data, Coinbase is one of the major international exchanges approved by De Nederlandsche Bank to offer cryptocurrency services alongside smaller local crypto companies. Coinbase Europe Limited and Coinbase Custody International are listed as crypto service providers in DNB’s public register.
The cryptocurrency firm says more registrations and license applications are underway in several key European regions. Coinbase received approval from the Italian government in July 2022.
the company has taken steps to work with the government, lawmakers and regulators to responsibly prove itself as the world’s most trusted and secure crypto platform. Coinbase’s vice president of international and business development expressed his enthusiasm for expanding the company’s services to the Dutch market.
“The Netherlands is a critical international market for cryptocurrencies, and I am very excited that Coinbase can bring the potential of the crypto economy to market here,” Nana Murugesan, Coinbase’s vice president of international and business development, said in a statement. That Coinbase is now in the Netherlands fits in with the company’s plans to grow rapidly in Europe. Coinbase first said it wanted to expand to Europe in June.
The announcement comes shortly after DNB published policy guidelines on sanction screening for cryptocurrency transactions on 16 September. DNB warned in the Q&A document about risks associated with cryptocurrencies, including anonymity.
Coinbase’s foray into the Netherlands fits into the company’s ambitious expansion plans in Europe. The cryptocurrency exchange initially announced its intention to expand its presence in Europe in June, citing the impact of a significant market decline.
In July, Coinbase received approval from Italy’s AML regulator, Organismo Agenti e Mediatori, as a Crypto Asset Service Provider. Coinbase plans to register in countries such as Spain and France.
According to the latest blog post, Coinbase now serves customers in nearly 40 European countries through hubs in Ireland, the UK and Germany. In accordance with local regulations, “further registrations or license applications are pending in several key markets,” the company said.
The market is under pressure from several directions at once, including the central bank’s decision to raise interest rates and inflation. As a result, the price of Bitcoin has fallen sharply.
Coinbase’s global expansion comes as the company faces several challenges. Over two consecutive quarters in 2022, the cryptocurrency exchange suffered significant losses, with losses totaling $1.1 billion in the second quarter. This was Coinbase’s biggest loss since its shares debuted on the Nasdaq exchange in April 2021. In June, Coinbase laid off 18% of its employees to cut costs.
Maxim Manturov, head of investment advisory at Freedom Finance Europe, says: “The situation is not easy for Coinbase, amid declining stock and cryptocurrency markets, which has resulted in a loss of users and revenue. Higher stakes make risky investments less attractive cryptocurrencies like bitcoin ( BTC) are difficult to value as there is really nothing to back many of these digital assets, which will lead to more volatility.
In July, US authorities arrested a former Coinbase executive on suspicion of insider trading. Two additional lawsuits in the United States allege that Coinbase made false claims regarding its business practices.
Although Coinbase is the largest crypto exchange in the US, newer players like Binance, FTX and Crypto.com are giving it a lot of competition. Binance’s American subsidiary recently stopped charging customers who trade bitcoin, sending Coinbase’s shares tumbling.
Coinbase is trying to keep pace with its competitors, who are making big gains in countries other than the US.
Both Binance and FTX have been licensed in Dubai. Binance also got approval from France and Italy, and it is trying to get approval from several European countries.
This article was written by Dmytro Spilka, CEO of Solvid.
[Fotocredits – rarrarorro © Adobe Stock]