US-based cryptocurrency exchange giant Coinbase is seeking regulatory approval in more European countries as a way to expand its presence in the region.
Strengthening the European presence
Nana Murugesan, vice president of international and business development at Coinbase, revealed that the cryptocurrency company is heading to Italy, France, Spain, Switzerland, and the Netherlands to set up operations, having secured licenses in Ireland, Germany, and the United Kingdom.
While the exchange has already hired its first employee in Switzerland, Murugesan said that Coinbase wants to appoint a regional manager for its European operations.
The Vice President of Coinbase said:
“When we entered the UK and Europe, this was actually during the last big bear market in 2015-2016. But then when you fast forward to 2017-2018, the UK is now a massive part of our business, as is Europe. We went in, we made bets. I’m sure it was probably a difficult time. But it has been worth it, significantly.”
Although it is the largest cryptocurrency exchange in the United States, Coinbase faces strong competition from rivals such as Binance and FTX. The US division of Binance recently eliminated fees for four bitcoin trading pairs, a move that sent Coinbase shares plummeting.
Additionally, both Binance and FTX are expanding outside of the US and have obtained licenses in the Middle East.
Binance is also making efforts to expand across Europe, having secured two regulatory approvals from France and Italy in May to operate as a digital asset service provider (DASP), and is actively seeking a license in Germany.
Meanwhile, Murugesan noted that Coinbase’s status as a publicly traded company sets the bar very high, adding that “it can sometimes take a little longer to get some things done.” But we want to stay the course.”
Coinbase sees a drop in trading activities
Coinbase has also been affected by the cryptocurrency market crash, with the prices of several cryptocurrencies dropping drastically. As CryptoPotato previously reported, the US company laid off over 1,000 employees, representing 18% of the global workforce.
Additionally, global investment giant Goldman Sachs downgraded Coinbase stock from “Neutral” to “Sell.” Murugesan also said that less than 50% of the exchange’s global monthly trading users use the app for trading activities.
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This post Coinbase Seeks Further Expansion in Europe Amid Crypto Bear Market
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