US exchange looks to Europe for business amid cryptocurrency crash
So long as the crypto-wide cryptocurrency crash persists, the US exchange aims to increase its business in Europe.
Coinbase, the leading cryptocurrency exchange in the United States, is trying to obtain regulatory approval in more countries across Europe to expand its business presence there.
European Presence to be Strengthened
Nana Murugesan, Coinbase’s vice president of international and business development, said that the crypto company is targeting Italy, France, Spain, Switzerland, and the Netherlands to set up operations in those countries after obtaining licenses in Ireland, Germany and the United Kingdom.
Coinbase has already hired its first employee in Switzerland, and it plans to appoint a regional manager for its European operations, said Murugesan.
The Coinbase VP said:
“When we entered the U.K. and Europe, this was actually during the last big bear market in 2015-2016. But then when you fast forward to 2017-2018, the U.K. is now a massive part of our business, as is Europe. We entered, we made bets. I’m sure it was probably a tough time. But it’s paid off, significantly.”
Coinbase, the biggest cryptocurrency exchange in the United States, faces strong competition from its rivals such as Binance and FTX. Recently, Binance's U.S. division eliminated fees for four bitcoin trading pairs; this caused Coinbase's shares to drop.
Binance and FTX have also obtained licenses in the Middle East, which is outside of the U.S., and are expanding their services.
Binance has also been trying to spread throughout Europe, having gained regulatory approval from France and Italy in May to operate as a Digital Asset Service Provider (DASP), and is actively seeking a license in Germany.
Murugesan noted that Coinbase's status as a publicly-traded company sets the bar high, and that "sometimes it may take a bit longer to get some things done."
Coinbase Sees Trading Volume Drop
The crypto market downturn has also affected Coinbase, whose prices of several cryptocurrencies have fallen drastically. As previously reported by CryptoPotato, the U.S. company laid off over 1,000 employees, which is 18% of the global workforce.
Goldman Sachs also downgraded Coinbase’s stock from “Neutral” to “Sell.” As for the remaining 50% of the exchange's global monthly transacting users, they do not use the app for trading activities.