For cryptocurrency companies, getting regulatory approvals is as important as a human being requiring oxygen to live and function. With many governments concerned about cryptocurrencies, regulations are a mid-point between these governments and cryptocurrency companies.
In a blog post shared on Monday, cryptocurrency exchange Coinbase Global Inc. announced that it has received regulatory approval from Italian regulators. The latest development will allow it to be able to continue to serve its Italian customers. The company shared that it had met all of the requirements stated by Italy’s regulator Organismo Agenti e Mediatori (OAM). The Organismo Agenti e Mediatori is charged with the onus of supervising financial agents and credit brokers in the country, as well as implementing decisions to curtail money laundering.
For regulators, there is a huge need to regulate the crypto space in their countries. Various financial watchdogs, regulators and even governments are looking to regulate the crypto space as they believe that cryptocurrencies pose some threats to financial stability, can be used to fuel illegal activities and operations, and can be used for corruption. Also, regulators feel the need to keep consumers protected at all times, hence these regulations.
Most regulators require cryptocurrency companies to acquire a license and meet certain rules that assure consumer safety before they can operate. They are also required to share information with these regulators. The Organismo Agenti e Mediatori (OAM), for instance, can collect and share data provided by cryptocurrency companies on their operations and clients with anti-mafia and anti-terrorism investigators in Italy, its website says.
“We are in the process of strengthening our presence across Europe. Our goal is to grow our customer base by launching the Coinbase suite of retail, institutional, and ecosystem products,” Coinbase’s Vice President for international and business development Nana Murugesan, said on the blog.
Binance, one of Coinbase’s biggest rivals already registered with the Organismo Agenti e Mediatori (OAM) in May. Binance, however, recently received a fine of 3.3 million euros for operating in the Netherlands without being registered.