The Irish central bank has granted Coinbase an e-money license which will enable it to operate freely throughout the EU. The San Francisco-based exchange is just the latest addition to many other crypto firms that have secured permission from the country to process payments, issue e-money, and handle electronic money wallets of clients in the European union.
The decision of the Irish authorities only further shows how great an impact the crypto business has had on the global financial world and how the response from governments has matured over the last few years.
The newly authorized crypto firm said in a statement, “Europe represents a huge opportunity for Coinbase and today’s announcement is another positive step for us in the region. The approval from the Central Bank of Ireland will now enable us to expand our Irish operation and deliver a better product to customers across some of our fastest-growing markets. It will also allow us to secure passporting for our customers across the EU and EEA.”
The news in August that Coinbase’s banking relationship was under threat shook the crypto markets, especially in Europe where the crypto exchange has its biggest client base. Not long after an online report suggested that Coinbase has found a new banking partner in the face of UK-based ClearBank.
The UK subsidiary of Coinbase had been granted an e-money license by the UK’s FCA as well, which facilitated the new partnership with British Banks. A huge development for Coinbase was when it became the first crypto exchange to use Britan’s Faster Payments Scheme, a network utilized solely by the traditional financial industry. This removed a significant impediment for UK users who previously had to transfer pounds into euros and go through an Estonian bank, a process which lasted a few days and slowed down the transactions.