Coinbase has been granted regulatory approval by the authorities as a Virtual Asset Service Provider (VASP) in Ireland, as announced in a company blog post on December 21.
Coinbase Receives Regulatory Nod to Function as VASP Regulated by Central Bank Of Ireland
On December 21, 2022, Coinbase (Nasdaq: Coin) released news that it had been given the regulatory go-ahead from the Central Bank Of Ireland, a member of the European System Of Central Banks. This followed the central bank’s “approval in principle” to Coinbase last October, allowing the trading platform to operate as a VASP and offer products and services in the country.
The Central Bank Of Ireland also permitted Coinbase’s VASP registration, allowing the platform to continue providing digital asset products, services, and solutions to customers. “individuals and institutions in Europe and internationally, from Ireland.” Coinbase stated that the exchange requires them to adhere to certain regulatory policies.
“This VASP registration means Coinbase Ireland will be subject to the Criminal Justice Money Laundering and Terrorist Financing (Amendment) Act 2010, demonstrating our commitment to the highest standards of compliance,” Coinbase disclosed. The Central Bank Of Ireland’s VASP Registry granted approval to two entities located in Ireland, namely Coinbase Europe Limited and Coinbase Custody International Limited.
The Central Bank Of Ireland has issued multiple warnings concerning investing in virtual currencies (VCs) and engaging with unregulated VASPs. In April 2021, the central bank issued a statement that stated that “VCs such as bitcoin and ether are unregulated VCs that can be used as a means of payment.” A second warning was issued by the central bank in March 2022 outlining the “risks of investing in crypto assets.”
At the time, Derville Rowland, chief financial officer of Ireland said:
While these investments can be attractive because of their high returns, they also come with significant risk. Investors should be aware that there are no protections if something goes wrong.
In addition to receiving regulatory approval in Ireland, Coinbase announced that Cormac Dinan has been appointed as Coinbase’s new country head. After the news was made public at 12:44 p.m., Coinbase shares rose by just 1.7%. However, COIN has seen a drop of more than 85% in value since last year.
“Ireland has been a natural home for Coinbase in Europe, not only because of its talent pool and openness to the industry, but also because of its membership and access to the EU,” said Nana Murugesan, vice president for international business and development for Coinbase. “The recent EU political agreement on MiCA is a very positive step, offering one of the most important regulatory frameworks globally for cryptocurrencies,” She added Murugesan.