Recently, French regulatory authorities have granted approvals to foreign cryptocurrency firms. On December 21, cryptocurrency exchange Coinbase and stablecoin issuer Circle received licences from France’s financial regulator, the Autorité des Marchés Financiers.
Reportedly, Coinbase secured the Virtual Assets Service Provider (VASP) authorization, ensuring compliance with European Union and international regulations. This licence empowers Coinbase to custody digital assets and facilitate crypto trading within the country. Additionally, the exchange expanded its services, announcing crypto trading for institutional foreign investors globally.
Meanwhile, Circle obtained conditional registration as a Digital Asset Service Provider, contingent on specific restrictions. To operate in France, Circle still requires approval as a Payment Services Provider, pending the acquisition of an Electronic Money Institution licence, as disclosed in a blog post.
We have achieved a significant early milestone in establishing our European regulatory platform by securing a conditional DASP Registration in France and appointing a Head of French Operations, Ms. Coralie Billmann. Read more 👇https://t.co/IAHY4L1hw8
— Circle (@circle) December 21, 2023
These approvals come amid a year marked by significant regulatory changes and legal challenges for crypto firms. The European Union has enforced the Markets in Crypto-Assets Regulation (MiCA) since June, regulating digital assets beyond existing financial services laws.
In contrast, crypto firms in the U.S. face greater regulatory challenges. The U.S. Securities and Exchange Commission has initiated lawsuits against various crypto businesses, including Coinbase. In June, Coinbase faced legal action for listing and trading crypto tokens considered securities by the regulator. Coinbase contends that the SEC overstepped its authority by categorising cryptocurrencies as securities.
Seeking regulatory clarity, Coinbase has urged the SEC to establish new rules for handling cryptocurrencies in 2022. In the latest development, Coinbase appealed the SEC’s decision on December 18 after its initial request was denied.