Coinbase, a leader in the cryptocurrency exchange domain, has consistently been at the forefront of expanding economic freedom, aiming to impact over a billion lives globally.
In a significant stride towards the goal, Coinbase is diligently working on a strategic expansion plan, focusing on building the most trusted and compliant products and services in the cryptocurrency market. With a clear ‘Go Broad, Go Deep’ strategy, Coinbase is laying the groundwork for international expansion through a series of clear rules, licenses, and registrations.
The EU MiFID licensed entity: A gateway to European markets
The latest development in the expansion journey is Coinbase is seeking to acquire a European Union MiFID (Markets in Financial Instruments Directive) licensed entity based in Cyprus. The acquisition is poised to be a game-changer, allowing Coinbase to offer its derivatives products to eligible customers across select EU countries.
The MiFID license is renowned globally, forming a critical part of the EU’s Capital Markets Union strategy and providing a comprehensive regulatory framework across the EU. By incorporating such a license into its portfolio, Coinbase aims to tap into the burgeoning interest in its derivatives offerings, targeting a significant portion of the global crypto market that derivatives claim.
Adhering to EU standards: A commitment to compliance and trust
Coinbase has meticulously developed a Five-point Global Compliance Standard to align with its regulatory compliance and trust commitment. The framework is pivotal in ensuring that the company’s operations meet the highest regulatory standards before any new license is put into action or services are extended to customers. The first aspect of the framework is a Vetted and Trusted Team, where Coinbase places significant emphasis on cultivating a workforce that embodies the company’s core cultural values. Each employee is subject to rigorous background checks, ensuring alignment with internal policies and a deep-rooted culture of compliance.
Additionally, the implementation of industry-leading Anti-Money Laundering (AML) and Know Your Customer (KYC) standards is paramount. The company’s global AML policy is tailored to comply with EU AML directives, enforcing stringent KYC and due diligence procedures for all customers.
Furthering its compliance commitment, Coinbase adheres to Global Sanctions Enforcement. The policy is crafted to align with various international sanctions regimes, including those from the US and Europe, ensuring comprehensive global compliance. In terms of governance, the new entity will be seamlessly integrated into Coinbase’s global governance structure. It includes both global and local board oversight, routine reporting procedures, and the creation of a Compliance Oversight Working Group dedicated to the specific entity.
The final component of the compliance standard involves Ongoing Rigorous Monitoring and Reporting. The entity will undergo continuous monitoring, testing, and independent audits to uphold the highest standards of regulatory compliance, including an annual independent AML assessment. This exhaustive compliance strategy is managed by a team of over 400 seasoned legal and compliance professionals, bringing a wealth of experience from leading regulatory bodies and institutions, ensuring Coinbase remains at the forefront of regulatory adherence and trust in the crypto market.
Coinbase is expanding its global reach
Coinbase’s team of over 400 legal and compliance professionals, with rich experience spanning various key regulators and institutions, oversees the implementation of these standards. The move is an exciting leap forward in the company’s efforts to widen access to its international derivatives offerings and to contribute to a more global and open financial system.
The acquisition, expected to close in 2024, is not anticipated to impact Coinbase’s financials significantly. It is subject to customary closing conditions, including regulatory approval, marking a pivotal moment in Coinbase’s journey towards global expansion and its mission to increase economic freedom worldwide.
Conclusion
Coinbase seeks a European Union MiFID licensed entity is a significant step in its global expansion efforts. The acquisition aligns with their goal of increasing economic freedom for over a billion people by offering broader access to derivative products in the EU.
Coinbase is set to enhance its international portfolio, adhering to stringent compliance and regulatory standards, ensuring trust and reliability in its services. The initiative, expected to close in 2024, not only exemplifies Coinbase’s commitment to growth and compliance but also positions the company as a formidable player in the global financial landscape, paving the way for a more inclusive and accessible financial future.
