Crypto.com and Coinbase have been approved by the Italian Organismo Agenti e Mediatori (OAM) to offer cryptocurrency trading, custody services and other products in Italy.
American companies are taking steps to expand their product offerings throughout Europe. With regulatory approval from OAM, they have joined other key players such as Binance as one of the few crypto asset operators with a license to provide virtual currency services in Italy.
Crypto.com and its growth streak
Despite the latest news about dismissal With 260 employees to cut costs, Crypto.com is still spending money to expand its customer base around the world.
March 2022 Crypto.com has joined the list of crypto firms to seek approval from the Dubai Virtual Asset Regulatory Authority for its virtual asset license. The pre-approval will allow the company not only to expand its customer base, but also to open a regional headquarters in the emirate.
Crypto.com COO Eric Anziani said:
“We are opening a regional headquarters for the Middle East and Africa here in Dubai. This will be a great addition to managing our operations from here because the UAE is diversifying its industries and trying to be bold and create opportunities. We are here not only to increase market share, but also to create a wider ecosystem that will provide more opportunities for everyone.”
The Monetary Authority of Singapore (MAS) provided the company in principle OK offer payment services to the South Asian market. Chris Marsalek, co-founder and CEO of Crypto.com, noted that Singapore is a thriving market with a well-regulated environment allowing the company to deepen its roots.
The company’s expansion streak is still ongoing as it has received approval from the Hellenic Capital Market Commission to operate in Greece.
Coinbase and its Growing Crisis
The approval of the Italian supervisory body was a rare positive development for Coinbase over the past few months.
It recently came under fire due to mass layoffs of its employees. At the beginning of June 2022, the company terminated employment contracts with some of its employees. recruits and fired 1100 employees due to market conditions. Coinbase CEO Brian Armstrong cited macroeconomic concerns and a looming recession as reasons for the move.
Despite the company’s efforts to reduce costs, the company’s performance declined. Report bloomberg suggests that the recent downturn in the crypto market has dealt a blow to Coinbase as it dropped out of the top ten exchanges to 14th place. This decline comes as its market share compared to the top 30% of crypto exchanges fell to 3.6% in the second quarter from 5.3% in the first quarter. So far in the third quarter, its market share is 2.9%.
July 15 a Business Insider Report revealed plans by Coinbase to suspend its affiliate marketing program in the US. Many critics argued that this was a move to save the company from an impending liquidity crisis. While the Coinbase community came to its defense, the exchange was still experiencing stablecoin outflows.
Like Cryptooshala About $248 million was reportedly withdrawn from Coinbase Pro that day, which is about 50% of all stablecoins in its vault. On-chain data obtained from CryptoQuant in the report shows that stablecoin holdings on Coinbase have been declining from an all-time high of $1.2 billion in January 2022 to a current value of $284 million as of July 15, 2022.
Credit : cryptoslate.com