Crypto Platforms Win EMEA Regulatory Approval


After years of operating a lucrative business model from offshore tax havens with little to no regulatory oversight, 2022 has been the year that cryptocurrency trading platforms have joined the financial mainstream as countries around the world they move to regulate space.

For larger players, that means applying for multiple licenses in multiple jurisdictions in order to operate smoothly and maintain credibility.

In recent days, companies like Binance, Coinbase, and Coincorner have gained significant official approval to do business in Europe, the Middle East, and Africa (EMEA).

Exchanges prepare for EU legislation

Ahead of the upcoming EU Markets for Crypto Assets (MiCA) legislation, in recent months crypto trading platforms have rushed to obtain the necessary licenses to continue operating legally.

More recently, US-based cryptocurrency exchange Coinbase Announced which has been successfully registered with the Dutch Central Bank (De Nederlandsche Bank – DNB) as a crypto service provider.

This registration will allow Coinbase to offer its full suite of products and services to customers in the Netherlands. Under the upcoming EU MiCA legislation, crypto firms licensed in one member state will be able to offer their services throughout the bloc.

Coinbase currently serves clients in nearly 40 European countries through dedicated hubs in Ireland, the United Kingdom, and Germany. In a press release announcing the new Dutch registration, the company stated: “Additional registrations and license applications are being made in several major markets, in accordance with local regulations.”

Other cryptocurrency firms that have registered with the DNB include cryptocurrency exchange Bitstamp and Ethereum staking DeFi platform BLOX.

Away from the Netherlands, Cyprus has proven to be a popular choice for companies looking to get licensed across the EU, with a number of international companies registered with the Cyprus Securities and Exchange Commission. These include BitPanda, Crypto.com, CMC Markets, and Revolut.

Read more: Ahead of MiCA, Cyprus Emerges as Preferred EU Crypto License Base

Another platform that is lining up for EU regulatory approval is the Freetrade trading app. In a crowdfunding pitch that Financial News reported this week, the firm stated that it intends to diversify into crypto as part of a push into the continental European market and has already applied for regulatory clearance.

Dubai continues to attract crypto businesses

Six months after passing its own crypto regulation, which created the Virtual Assets Regulatory Authority (VARA), Dubai’s position as a regional crypto hub continues to gain momentum.

Related: Dubai Virtual Assets Regulatory Authority Opens Sandbox-Based Metaverse Headquarters

Binance world cryptocurrency exchange Announced last week that it received a Minimum Viable Product (MVP) license from VARA, following the issuance of its provisional license in March 2022.

The MVP license means that Binance can offer an approved range of virtual asset-related services to retail and institutional investors in Dubai.

The transition to an MVP License from a Provisional License received earlier this year means that Binance can open a client money account with a national bank and provide services including virtual asset exchange services, conversion between virtual assets and fiat currencies. , virtual asset transfer, virtual asset custody and management, virtual token offering and trading services, and virtual asset payments and remittance services.

Last year, Binance deepened its ties with the Emirate of Dubai. Like Reuters reported In March, the firm worked with lawmakers to help shape VARA, which the firm’s regional director for the Middle East and North Africa (MENA) region called a “very progressive framework.” there have even been speculation that you can even open a branch there.

Earlier this month, the Palazzo Versace Dubai luxury hotel announced that it had partnered with Binance to allow customers to pay with cryptocurrencies.

Read more: Palazzo Versace Dubai Luxury Resort Accepts Crypto Through Binance

Another of the companies that has settled in Dubai in recent days is the Scottish Cigrek Capital, which this month launched its solution for digital asset strategy managers simultaneously in Dubai and the EU.

Explaining the rationale behind the Dubai launch, company founder and CEO Laura Barscevska said: “The new platform is designed to match leading investment talent in the digital universe with wealthy investors in the Gulf who want a higher exposure to this asset class.

“Our Dubai investment platform has been established to satisfy the real appetite for a locally regulated platform that will allow investors to allocate some of the best cryptocurrency management talent out there. We are already in discussions with some pioneering fund managers in this space that we will bring to the Gulf market in due course.”

In other Dubai crypto news, CoinCorner, a UK-based company that facilitates bitcoin-based trading and payments, has partnered with Seed Group to offer its bitcoin transaction services in the UAE and the region. MEN in general.

Seed Group is a company of the Private Office of Sheikh Saeed bin Ahmed Al Maktoum in Dubai.

For all PYMNTS EMEA coverage, subscribe to the journal EMEA Newsletter.

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