Coinbase, Circle awarded crypto licenses in France ahead of MiCA

Coinbase and Circle each expanded their European presences following regulatory approval from the French AMF.

Crypto exchange Coinbase secured a virtual asset service provider (VASP) license from France’s Financial Markets Authority (AMF) as it positions itself outside the U.S. and across European markets. 

The AMF’s approval authorizes Coinbase to do business as a digital asset trading venue, offering cryptocurrency trading, crypto-fiat pairs, and crypto custodial services, according to a Dec. 21 CNBC report and a company spokesperson.

Meanwhile, USD Coin (USDC) operator Circle announced conditional registration with the French AMF. CEO Jeremy Allaire said the company hopes to obtain a full Digital Asset Service Provider (DASP) from France’s financial watchdog. 

Both developments arrive ahead of the European Union’s (EU) Market in Crypto-Assets (MiCA) legislation. MiCA will take effect starting December 30, 2024. However, its stablecoin provisions will come into force from June 30 of the same year. 

This harmonized crypto regulation framework will replace individual digital asset rules within EU member states, allowing approved MiCA companies to offer services across the bloc’s nations. 

Coinbase and Circle strengthen their MiCA readiness amid strong enforcement action from regulators in the United States. For example, the Securities and Exchange Commission (SEC) sued Coinbase and rival crypto exchange Binance for allegedly offering unregistered securities.

SEC Chair Gary Gensler has expressed staunch scrutiny of crypto assets and digital asset service providers, calling most tokens securities and insisting that virtual currencies fall under the purview of existing financial policies.

Coinbase, like many crypto entities and proponents, disagrees with the SEC’s take on crypto’s securities status. The company, led by CEO Brian Armstrong, filed a rule-making plea seeking transparent crypto rules from the SEC, which has regulated through litigation, according to Coinbase.

In response, Gensler’s SEC denied the company’s request, citing rhetoric regarding laws already governing U.S. financial markets.