Coinbase, Circle Obtain Regulatory Approval, Secure License In France

France, a country poised to establish itself as a cryptocurrency hub, granted regulatory approvals to foreign cryptocurrency businesses Coinbase and Circle on Thursday, just a few days before the year draws to a close.

Coinbase, one of the world's biggest crypto exchange platforms by trading volume, received the Virtual Assets Service Provider (VASP) authorization from the Autorité des Marchés Financiers, France's financial regulator.

The approval assured that Coinbase is compliant with the European Union and several international regulations and allows the crypto business to custody digital assets and offer, facilitate cryptocurrency trading in the country.

"...This registration will allow Coinbase to offer our full suite of retail, institutional, and ecosystem products and services to users in France," the crypto exchange, which called the latest registration a "significant milestone" in its "international expansion journey," said in a blog.

"We're focused on bringing the benefits of crypto to the world. 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," Daniel Seifert, Vice President and Regional Managing Director, EMEA at Coinbase, said in a statement.

Meanwhile, Circle, a fully reserve and of the largest stablecoins in market cap, also received a conditional registration as a Digital Asset Provider (DASP) in France.

Circle still needs approval as a Payment Services Provider (PSP) to operate in the country. It has applied for an electronic money institution license, a prerequisite for PSP approval.

"For over a decade, Circle has embraced a regulatory-first approach in advancing the use of blockchain technology and full-reserve payment stablecoins to empower businesses, promote financial inclusion and drive internet-speed global payments. The issuance of this conditional DASP registration in France marks a significant early milestone as we work towards establishing our European regulatory platform," Jeremy Allaire, Circle co-founder and CEO, said.

Subject to regulatory approval, Circle appointed payments industry veteran Coralie Billmann to spearhead its licensed operations in the country.

"With Coralie Billmann joining Circle, her deep market expertise and leadership will be instrumental in furthering our regulatory efforts and deepening our connections in France," Allaire added.

"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," Dante Disparte, Circle's chief strategy officer and head of global policy, said.