Prominent digital asset exchange Coinbase has recently made a significant move towards expanding its services overseas. The American crypto trading platform has registered with the Bank of Spain as an authorized cryptocurrency exchange and custodian wallet provider. This development showcases Coinbase’s commitment to extending its footprint beyond the borders of the United States.

Coinbase’s entry into the Spanish market aligns with Phase II of its international expansion strategy, aptly titled “Go Broad, Go Deep.” As part of this strategy, the exchange has obtained an anti-money laundering (AML) license from the Spanish apex bank.

With this registration, Coinbase is now authorized to act as a custodian of crypto assets for Spanish citizens while also serving as a trading platform for cryptocurrencies that comply with Spain’s legal tender regulations or other crypto assets.

A key factor that likely influenced Coinbase’s foray into the Spanish crypto market is the upcoming adoption of the Markets in Crypto-Assets (MiCA) regulations by Spain in 2024. MiCA is part of the European Union’s regulatory framework and provides essential clarity for cryptocurrency operations within the region, acknowledging the immense potential of digital assets.

Spain has emerged as a thriving crypto hub, with an impressive 29% of Spanish adults endorsing cryptocurrencies as the future of finance. According to a report by Bitnovo, the adoption of digital assets as a payment method in the country is also remarkably high, with cryptocurrencies now ranking as the second most popular payment option ahead of traditional bank transfers.

Nana Murugesan, Coinbase’s Vice President of International and Business Development, expressed appreciation for the increasingly global scope of crypto regulations. This favorable regulatory environment has enabled Coinbase to establish its presence in multiple countries, including Spain. In addition to Spain, the exchange has acquired Virtual Asset Service Provider (VASP) licenses in Italy, Ireland, and the Netherlands, and it has received in-principle approval in Singapore. Furthermore, Coinbase plans to launch in Brazil and Canada in the near future.

However, alongside its global expansion, Coinbase continues to face challenges on the home front. The exchange is currently embroiled in a legal battle with the US Securities and Exchange Commission (SEC). In June, the SEC filed a lawsuit against Coinbase, accusing it of operating an unregistered securities exchange and engaging in improper brokerage and clearing activities.

Despite this regulatory clash, Coinbase remains steadfast in its pursuit of expanding its services and fostering cryptocurrency adoption around the world. The recent registration with the Bank of Spain cements Coinbase’s commitment to providing secure and trusted cryptocurrency services to Spanish investors and traders.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The NFT and cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.