The largest crypto exchange platform in the United States, Coinbase, seeks to expand outside the shores of America. The exchange is looking to keep pace with Binance, Crypto.com, and FTX, which have made considerable strides in Europe.
Coinbase Push for Europe License
The U.S.-based crypto exchange is on a mission to move to as many European countries as possible by applying for an operating license. However, it already has a branch in parts of the U.K. and Germany.
Nana Murugesan, Coinbase vice president international, revealed that the exchange’s sights are on Switzerland, Spain, and others. The vice president added that Coinbase would soon hire capable hands as the expansion progresses.
Amid the widespread buzzword called “crypto winter,” the American crypto giant is looking for further expansion. However, like other struggling exchanges, Coinbase has announced an 18% reduction in its workforce to stay afloat as the crypto market continues to bleed.
Despite the bearish outlook of the broader crypto market, Murugesan noted that Coinbase is unfazed by the challenges. A regional manager in Europe is the next priority of the exchange as it looks to fill critical roles for further growth.
According to Murugesan, Coinbase entered the U.K. and some parts of Europe during the previous market downtrend between 2015 and 2016. The vice president added that by 2018, the U.K had become a huge part of Coinbase’s success.
Furthermore, the period was challenging for Coinbase as the market situation was unfavorable for its operations. However, the bet Coinbase took has paid off; as Murugesan noted, the journey has just begun.
Most European countries have strict anti-money laundering regulations, and Coinbase is looking to get approval under them, according to Katherine Minarik, head of Coinbase’s legal department.
Moreover, the Market in Crypto Assets (MiCA) laws will soon take effect, and Coinbase is bracing itself for the EU’s landmark crypto legislation. The MiCA bill is designed to serve as a single crypto guideline implemented across the EU bloc.
A further meeting between officials of the European Council and Parliament is taking place on the last day of June. If all aspects of the bill are successfully ironed out, MiCA will become effective by 2024.
Minarik added that once MiCA is approved, Coinbase can easily navigate its way across the 27 EU member states.
Will Coinbase’s Expansion be Possible?
Despite its status as the biggest crypto service provider in America, the exchange faces stiff competition from Binance and others. For its part, Binance has a well-thought-out strategy in the U.S. that has affected Coinbase’s standing in America.
The world’s largest crypto exchange dropped transaction fees for Bitcoin’s customers, which has sent Coinbase gasping for air.
As a result, Coinbase is trying to keep up with its rivals as the race for dominance in the crypto space continues to get tougher.
Coinbase will do more to double its close to 9.2 million users, who are not up to 50% of active users of the exchange’s trading app.