The U.S. crypto exchange Coinbase announced that it has named Ireland its primary regulatory and operational hub within the EU. This revelation emerged from an exclusive conversation the company had with CNBC. The San Francisco-based crypto giant has maintained a presence in Dublin since 2018 and currently houses around 100 staff members in Ireland.
Coinbase MiCA in Ireland
With the company’s recent submission to the Central Bank of Ireland, it hopes to secure a MiCA (Markets in Crypto-Assets) license, which is anticipated to be operational by December 2024. Once obtained, Coinbase can streamline its expansion into various EU countries, including Germany, France, Italy, and the Netherlands, eliminating the need for country-specific licenses.
Nana Murugesan, Coinbase‘s vice president of international, expressed the firm’s readiness to operate under the MiCA license immediately upon its approval. He emphasized that Ireland’s regulatory sophistication and openness to innovative technology greatly influenced the decision.
MiCA is the EU initiative to offer a unified regulatory approach for crypto businesses, aiming to safeguard crypto-asset investors. The proposed regulations emphasize the separation of client and company assets, among other conditions.
Discussing Coinbase‘s regulatory journey, Murugesan remarked, “We have been in active discussions with numerous member states ever since the MiCA legislation was tabled. Ireland’s proactive engagement throughout the deliberation phase was commendable.”
The European Strategy
Coinbase currently holds multiple regulatory licenses across the EU, including an electronic money institution license in Ireland, a crypto license in Germany, and various national registrations in countries such as Italy, Spain, and the Netherlands.
However, not all is sunny for the crypto behemoth. On its home turf, the U.S. Securities and Exchange Commission (SEC) has accused Coinbase of operating an unauthorized securities platform, an allegation the company fervently denies. Paul Grewal, Coinbase’s chief legal officer, vocalized his concerns about the slow pace of crypto regulations in the U.S., contrasting it with the more definitive approach seen in the EU through MiCA.
Coinbase makes up to 20% of the company’s top-line revenue originates from Europe. Moreover, the company plans to establish Germany as its talent nexus, reflecting on the significant growth and doubled headcount they’ve witnessed in their German operations. Daniel Seifert, Coinbase‘s vice president of EMEA, also shared plans for upcoming partnerships with other payment providers in the region.
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