France Encourages Crypto: Circle Registers For Digital Asset Services Provider, Coinbase As Virtual Asset Services Provider

To attract more crypto companies to France, the government made two moves to open borders and take advantage of the clarity in industry regulations.

What Happened: Circle received conditional registration as a digital asset service provider from the Financial Markets Authority (AMF) of France. Issuer of USDC USDC/USD and EURC EURC/USD, Circle added payments industry veteran Coralie Billmann for heading its licensed operations in the country, post regulatory approval.

The conditions for registration are that Circle should receive approval as a payment services provider (PSP) or registration as an agent of a PSP. This is possible through the Electronic Money Institution license, for which Circle has applied.

Separately, Coinbase Global Inc COIN was granted registration as a Virtual Asset Services Provider in France enabling the offering of retail, institutional and ecosystem products and services in the country.

The third largest crypto exchange by trading volume said that registration will assist in offering custody of digital assets, buying and selling of digital assets for fiat currency, and trading of digital assets. Coinbase has an e-money license in Ireland and registration in Spain. Also, the exchange planned to make Ireland its European Union hub.

Also Read: Circle Launches EURC Stablecoin On Fourth Blockchain, Solana Sees 3-Month Surge Of 260%

Why It Matters: The European Union’s Markets in Crypto Assets (MiCA) legislation will be effective across 27 nations in 2024.

“The selection of France as our European regulatory base builds on the country's clear rules for responsible innovation in fintech and digital assets while leveraging France's dynamic entrepreneurial, technological, banking, and financial services ecosystem,” Circle's Chief Strategy Officer and Head of Global Policy Dante Disparte commented.

“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. France has a thriving Web3 ecosystem and we are excited at the prospect of contributing to it,” Coinbase Vice President and Regional Managing Director, EMEA Daniel Seifert said.

Read Next: Coinbase Shares Skyrocket, Surpass Crypto Giants Bitcoin, Ethereum In 2023

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