James Atkins
Editor
Editor
After obtaining approval from the Italian financial regulators, Coinbase can continue to provide service to Italian customers, according to CoinDesk. The San Francisco-located exchange states on its webpage that the Organismo Agenti e Mediatori (OAM) has added a fresh requirement.
The OAM is now regulating crypto exchanges as part of a previously announced government decree.
The new regulation went into effect on January 5. Coinbase says. It “has been fully compliant with the new regulation” and that its services in Italy will not be interrupted. Crypto exchanges in Italy must now register with the OAM and maintain records of their customers’ transactions
If a custodian or crypto exchange wants to continue to offer services in Italy, they have to meet certain criteria. Crypto exchanges that did not register with the OAM by January 5 were required to stop operating in the country.
Coinbase is one of the most popular crypto exchanges in the world, and it is available in 32 countries. It allows users to buy and sell cryptocurrencies, as well as store them in a wallet on the Coinbase platform.
Coinbase Vice President of International and Business Development Nana Murugesan comments:
It’s critical to build a constructive relationship with regulators in every region where we operate. Obtaining this regulatory approval is proof of our cooperation and positive working relationship with the Italian financial regulators.
Coinbase has clients in many different European countries through hubs in Germany, the United Kingdom, and Ireland. The biggest US crypto exchange is currently expanding its presence across Europe.
According to the company, it is licensed in numerous important jurisdictions and has applications or registrations pending in several prominent markets. It aims to attract new users to each of these regions by introducing the Coinbase suite of ecosystem; institutional, and retail offerings.
Coinbase plans to offer crypto-to-fiat (C2F) trading pairs in Europe later this year as part of its institutional expansion. The move would enable European clients to buy and sell digital assets using Euros and other traditional currencies.
Institutional investors are a crucial customer base for Coinbase. The company has been beefing up its services for these clients in recent months. Including the launch of a new platform called Coinbase Prime and the acquisition of a broker-dealer license.
The approval from the Italian financial regulator is a key step for Coinbase. As it looks to expand its presence in Europe. The company is already one of the leading crypto exchanges in the region. With a strong presence in the UK and Ireland.
Binance has also been granted regulatory approval in Italy. In a statement at the time, Binance’s CEO Changpeng Zhao says:
“Clear and effective regulation is key to the broad market adoption of crypto. We thank the OAM and the Ministry of Economy and Finance for their efforts in defining the requirements to do business transparently in Italy. We are excited to work with them as we roll out our services across Europe.”
Crypto exchanges have been facing increased scrutiny from regulators in recent months. Bittrex, for example, recently had its banking services suspended by US regulators. Coinbase has also been investigated by the IRS over possible tax evasion.
Financial watchdogs CONSOB last year labeled Binance as illegal. The world’s major exchange was also prohibited from issuing Italian consumer’s derivatives.
A few weeks back, Binance received licenses in Dubai and Bahrain and secured regulatory approval in France. The company is now looking to expand its operations in Africa.
The Italian market regulator CONSOB has now approved Coinbase’s application to operate as a Crypto Exchange in the country.
This is a big development as Coinbase becomes one of the first Crypto Exchanges to be regulated in Italy. What do you think about this development? Hit the comment section and tell us!
I have been writing copy for blockchain-related projects since 2017. I understand the importance of being able to communicate clearly and effectively with both technical and non-technical audiences. By leveraging my understanding of the crypto industry trends, I can help increase adoption in this rapidly evolving landscape.
