Coinbase, the U.S.-based cryptocurrency exchange, has marked another milestone in its European expansion. The company recently announced its successful registration with the Bank of Spain, enabling it to offer a full range of products and services to both retail and institutional users in the country. This move comes as part of Coinbase’s “Go Broad, Go Deep” strategy, aimed at international growth.
The registration with Spain’s central bank is particularly noteworthy given the ongoing regulatory challenges Coinbase faces in the United States. The Securities and Exchange Commission’s scrutiny has cast a shadow over the company’s future in its home market. Consequently, the exchange has been aggressively pursuing international expansion to diversify its operations. Besides Spain, Coinbase has also secured approvals in Ireland and Italy and has been actively hiring staff for its European division.
Spain’s growing appetite for cryptocurrency
Coinbase’s entry into Spain is well-timed. According to the company, 29% of adults in Spain view cryptocurrency as the future of finance. Moreover, digital assets have become the second most popular payment method in the country, even surpassing traditional bank transfers. Nana Murugesan, Vice President of International and Business Development at Coinbase, emphasized the company’s commitment to regulatory compliance globally. In the past year, Coinbase has obtained Virtual Asset Service Provider (VASP) registrations in multiple European countries, as well as in-principle approvals in Singapore and launches in Brazil and Canada.
Coinbase is not the only player eyeing the lucrative Spanish market. Crypto.com, another major cryptocurrency exchange, received regulatory approval from the Bank of Spain earlier this year. Additionally, Coinbase had shown interest in acquiring FTX Europe, which filed for bankruptcy in November 2022. This indicates a highly competitive landscape as exchanges vie for market share in Europe.
As Coinbase continues its European journey, it’s worth noting that the Markets in Crypto-Assets Regulation (MiCA) Act is progressing toward its December 2024 implementation deadline. The European Parliamentary Research Service (EPRS) has urged for stricter regulatory frameworks in non-EU jurisdictions. This could have implications for Coinbase and other exchanges operating in Europe.
