18 Oct 2019
San Francisco-based cryptocurrency exchange, Coinbase, has been given a license to operate in Ireland. According to a report on the firm’s blog on Saturday, Coinbase is among the first companies to get a license from the central bank of Ireland.
Coinbase opened its Dublin office last year. Within a year, it has been able to receive an operating license for its services in Ireland. The CEO of the exchange company, Zeeshan Feroz, in its blog, said the exchange is going to open EEA ( European Economic Area and EU markets for its teeming customers.
“Coinbase’s choice of Dublin for this operation reinforces the strength of Ireland as a destination for financial services companies, providing a consistent, certain, pro-enterprise policy environment for businesses to grow and thrive.”
Coinbase is trying to expand its reach in Europe. In doing so, it will be able to reach out to more customers of the firm. Coinbase is trying to bring the exchange company closer to the investors. It is the first European market the company is opening. There will be more in the European market, said Zeeshan Feroz. The IDA Ireland (a business development agency in the country), called this development a welcomed one. It is a step in the right direction for the local financial industry.
The move to begin its European investment in Dublin is a strategic one for Ireland. It further reiterates the fact that Ireland is a favorable destination for foreign investors looking for a consistent business environment. Dublin’s state policies are very consistent and less stringent for businesses.
The Financial Conduct Authority granted Coinbase operating license in March 2018. The license will allow Coinbase to operate in the country as a money service. Although the United Kingdom is still with the EU, the government is preparing to withdraw from the EU in a few months through Brexit. It will not, in any way, stop or prevent Coinbase from operating in the country. However, it could affect the overall benefit of the license to Coinbase.
So, the company is taking a calculated risk because the business environment in the U.K after Brexit may not be the same. Earlier in October, users faced withdrawal issues after the split with Barclays Bank. The resulting collaboration with the U.K to create a quicker payment system via ClearBank caused the withdrawal delays.
But some experts say the new move to receive a license will improve the payment scheme and bring Coinbase closer to the European market.
According to Feroz, who informed The Guardian recently, stated that the choice for Dublin is not only for the business sense. It is a plan B in case the U.K leaves the EU through Brexit. The company is trying to take advantage of the pool of financial resources and services available in Ireland. He said that this is a contingency plan in case Brexit becomes a reality.
With the e-money license granted to Coinbase, it seems the company is on the right track to strengthen its presence in the European market.
Author: Ali Raza for Crypto-Rating.com
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