Coinbase Secures Regulatory Approval to Operate as a Virtual Asset Service Provider in Ireland – On December 21, 2022, Coinbase (Nasdaq: COIN) notified the public that it has received regulatory approval from the Central Bank of Ireland, a member of the European System of Central Banks. The news follows Singapore’s central bank giving Coinbase “in-principle approval” last October so the trading platform can operate as a VASP and provide products and services in the island state.
Additionally, Ireland’s central bank has authorized Coinbase’s VASP registration, and the trading platform can continue to offer digital asset products and services to “individuals and institutions in Europe and internationally, from Ireland.” The exchange highlighted on Wednesday that Coinbase must also comply with regulatory policies.
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“This VASP registration means that Coinbase Ireland will be subject to the Criminal Justice Money Laundering and Terrorist Financing Act 2010 (as amended), demonstrating our commitment to the highest standards of compliance,” Coinbase disclosed. According to the firm, the VASP registration approved by Ireland’s central bank covers two Ireland-based entities, which include Coinbase Europe Limited and Coinbase Custody International Limited.
The Ireland central bank has issued numerous warnings against investing in virtual currency (VCs) and dealing with unregistered VASPs. In April 2021, Ireland’s central bank issued a warning that said “VCs such as bitcoin and ether are unregulated VCs that can be used as a means of payment.” Ireland’s central bank also issued another statement in March 2022 which summarizes a “fresh warning on the risks of investing in crypto assets.”
At the time, Derville Rowland, Ireland’s director general of financial conduct, stated: “While people may be attracted to these investments by the high returns advertised, the reality is that they carry significant risk — People should also be aware that if things go wrong, you do not have the protections you would have if you invested in a regulated product.”
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In addition to receiving regulatory permission in Ireland, Coinbase appointed Cormac Dinan as its new country director. At 12:44 p.m. (ET) on December 21, 2022, upon the announcement of the news, Coinbase shares rose by just over 1.7%. “Ireland has been a natural home for Coinbase in Europe, not least because of its talent pool and openness to industry, but also because of its EU membership and access,” Nana Murugesan, Coinbase’s vice president of international and business development said in a statement on Wednesday. “The recent EU political agreement on MiCA is a hugely positive step, offering one of the most globally significant regulatory frameworks for crypto,” Murugesan added.
