The Organismo Agenti e Mediatori (OAM), the agency that approves credit institutions and financial agents, has approved Coinbase to operate in the Country. The regulator grants licenses to firms that meet the threshold for anti-money laundering practices.
Following the move, Crypto investors in Italy will be able to participate in the Crypto market activities while enjoying government protection.
Italy is a major player in the European economic zone, and this move marks an important milestone in integrating Crypto into the mainstream financial system.
Coinbase Is Commencing Operations in Many Countries
The Crypto exchange platform commenced operations in the Netherlands, France, and Spain last month. The organization also operates in Ireland, the U.K., and Germany and is on course to setting up shop in Switzerland. Nana Murugesan, the Vice President of Coinbase, disclosed that the platform has a goal for expansion and is set to launch products for the retail, institutional, and ecosystem market segments.
Operating in a country enables Crypto traders to access all features on the platform to transfer and receive digital assets. Users can also link their cards to wallets for payment purposes, which support exchange functions.
The EU Has Been Tightening the Crypto Policy
As the adoption of Cryptocurrency rises, the European Central Bank (ECB) is mulling the adoption of a blanket policy applicable to all members. The ECB aims to mitigate the risks emanating from using digital assets, especially in a bear market that can erode market capitalizations in the Crypto market.
In this regard, the bank has been working with lawmakers in Brussels to enact Crypto laws that will become operational in 2024.
In the meantime, the E.U. has in place laws that require Crypto Services Providers (CSPs) to demonstrate customer safeguards that they have integrated on their platforms. Some safeguards include data protection, full disclosure of material facts, and more.
Coinbase is Weathering a Social Media FUD Storm
Coinbase has been receiving FUD on social media, especially after the CEO, Brian Armstrong, and his team chose to lay off 18% of the staff in a restructuring. When the firm opted to cut off its U.S. Affiliate Program, the market was abuzz with news that Coinbase was becoming insolvent. The FUD was started by a YouTuber identified only as BitBoy, and it had far-reaching consequences as BTC deposits fell.
On the stock market front, Coinbase stocks have plunged by 75% in the last six months, and a share is now trading at 53.79 USD.
In the meantime, the confidence in Coinbase is set to rise following the Italian approval. The exchange is also set to attract more Crypto investors in its global foray, which can increase its revenues in the Crypto winter.