Cryptocurrency exchange Coinbase has been granted an e-money license by the Central Bank of Ireland.
The news was published via a company blog, Coinbase UK CEO Zeeshan Feroz stating that the exchange is one of the very first firms to be granted the license from the central bank, following a Dublin office opening a year ago. He further stated that the license will enable Coinbase to process payments, issue e-money, and handle electronic money wallets.
In addition to that, the new license will help Coinbase expand its Irish operations, as well as help open up European Union (EU) and European Economic Area (EEA) markets for Coinbase customers. The development will also allow the San Francisco-based exchange to operate under their legal entity name.
According to a company 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. “
Following the news, state-sponsored business development agency IDA Ireland – whose aim is to attract foreign investment to Ireland – asserted that this development is a net positive for the local financial industry.
CEO Mike Shanahan has explained that the exchange’s choice for a Dublin office reinforced the strength of Ireland as a hub for financial services companies, all the while providing a consistent, certain, pro-enterprise policy environment for businesses to grow and thrive.
The cryptocurrency exchange was granted a U.K. e-money license by the Financial Conduct Authority in March 2018, allowing the exchange to operate as a money service in the country.
Although the U.K. is still an EU member state, due to the impending Brexit it could affect Coinbase’s market reach. If it goes ahead, the separation would render Coinbase’s local license of limited benefit.
Earlier this month, Coinbase gained access to the UK’s Faster Payment Scheme via ClearBank following a separation with banking partner Barclays, which at that time temporarily caused deposit and withdrawal issues for users.