The Central Bank of Ireland has authorized crypto exchange Coinbase to act as a Virtual Asset Service Provider (VASP), it announced on Dec. 21. The company’s operations in the country will be overseen by Cormac Dinan, a former employee of Crypto.com, Deloitte and Citigroup.
By virtue of the VASP registration, Coinbase Ireland will be subject to the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010.
Two Coinbase entities are covered by the VASP registry: Coinbase Europe Limited and Coinbase Custody International Limited. The former provides cryptocurrency trading services to European clients, while Coinbase Custody International provides cryptocurrency custody services to institutional clients throughout the region.
Nana Murugesan, Coinbase’s vice president of international and business development, commented on the approval:
“Our Irish regulatory approval demonstrates our commitment and partnership with the Central Bank of Ireland. Coinbase views industry regulation as an enabler for cryptocurrency growth, setting clear ground rules that will create an environment that fosters innovation and bolsters trust in the sector”.
The executive also emphasized the importance of political agreement of the European Union on the framework of the Crypto-asset Markets in providing one of the most significant regulatory frameworks for cryptocurrencies worldwide. According to Coinbase, other registrations or license applications “are ongoing in several major markets.”
In 2018, Coinbase started operating in Ireland after concerns about the repercussions of Brexit on its business in EU countries. Since then, the company has been engaged in various activities such as market operations, regulatory compliance, cybersecurity, legal affairs, and customer experience. Coinbase obtained its first license in the country in 2019, when it was granted an e-money license by the central bank of Ireland, ensuring the ability to serve customers across the EU and the European Economic Area.
In addition to Ireland, Coinbase has dedicated hubs in the UK and Germany; in the latter country, Coinbase is in the public eye due to the outsourcing of some of its essential banking operations. In September, the company was registered with De Nederlandsche Bank, the central bank of the Netherlands, which allowed the exchange to offer its retail and institutional products in the country.
The cryptocurrency trading platform Gemini was the first company in the sector to register as a VASP with the Central Bank of Ireland in July 2022.
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