In Ireland, Coinbase has received regulatory approval to operate as a virtual asset service provider (VASP), the company wrote in a December 21 blog post. The company says Coinbase has received approval from the Central Bank of Ireland, allowing it to “offer products and services to consumers and organizations in Europe and globally from Ireland.”
Central bank approves Coinbase
Coinbase explained in a blog post that the new accreditation comes after the Central Bank of Ireland previously approved the company as an Electronic Money Institution (EMI). This EMI approval allowed Coinbase to issue virtual currencies and offer virtual banking services in Ireland.
The Financial Fraud and Terrorist Financing in Criminal Matters Act 2010 requires businesses with digital assets to comply with the VASP registration process, which was only introduced in 2021. As part of the approval process, the central bank will review a company’s money laundering and terrorism protests.
According to Nana Murugesan, a prominent Coinbase executive, “Coinbase sees economic legislation as a catalyst for cryptocurrency growth by providing clear ground rules that foster an atmosphere conducive to innovation and build trust in the industry. .
Ireland’s central bank has warned citizens
The Central Bank of Ireland has issued numerous warnings against working with unregistered VASPs and buying virtual currencies (VC). In April 2021, the Central Bank of Ireland warned that “VCs such as Bitcoin and Ether are prohibited VCs which can be used as a means of payment”. In March 2022, the Central Bank of Ireland also issued a public statement, which is considered a “serious warning of the risks associated with trading in cryptocurrencies”.
Chief Executive of the Financial Conduct Authority of Ireland, Derville Rowland, said:
“Apart from the huge profits that are promised, these investments are very risky. People should be aware that if something goes wrong, they don’t have the same guarantees as buying an approved product.”
Conclusion
Ireland was a logical choice for Coinbase in Europe, not only for its talent pool and industry-friendly environment, but also for its EU membership and market access. The approval of the VASP aims to encourage the use of virtual currency and the execution of fast transactions, which will also benefit the country’s economy and other financial systems in the country.