Coinbase, the U.S.-based cryptocurrency exchange, seeks regulatory approval in more European countries in order to grow its presence in that region.
Strengthening European Presence
Nana Murugesan, Coinbase’s vice president of international and business development, revealed that the crypto company is targeting Italy, France, Spain, Switzerland, and the Netherlands to set up operations, having obtained licenses in Ireland, Germany, and the United Kingdom.
Murugesan, Coinbase’s first employee in Switzerland said that the exchange had already hired a manager.
According to Coinbase VP:
“When we entered the U.K. and Europe, this was actually during the last big bear market in 2015-2016. When you look back to 2017, the U.K. has become a major part of our business as well as Europe. We entered, we made bets. I’m sure it was probably a tough time. But it’s paid off, significantly.”
Coinbase, the largest cryptocurrency exchange in America, is now facing stiff competition from rivals such as Binance and FTX. Binance’s U.S. division recently eliminated fees for four bitcoin trading pairs, a move that caused Coinbase’s shares to plummet.
Binance as well as FTX are expanding beyond the U.S.A. They have received licenses for the Middle East.
Binance is also trying to expand throughout Europe. In May, Binance received two regulatory approvals in France and Italy to operate as a Digital Asset Service Provider. Binance is now actively looking to get a license to do business in Germany.
Meanwhile, Murugesan noted that Coinbase’s status as a publicly-traded company sets the bar high, adding that “sometimes it may take a bit longer to get some things done. But we want to stay the course.”
Coinbase sees a drop in trading activities
Coinbase also suffered from the crypto market crash, which saw the prices of many cryptocurrencies plunge. As previously reported by CryptoPotatoOver 1,000 people were laid off by the U.S.-based company, 18% of global workforce.
Also, global investment giant Goldman Sachs downgraded Coinbase’s stock from “Neutral” to “Sell.” Murugesan also said that less than 50% of the exchange’s global monthly transacting users use the app for trading activities.