Already present in the United Kingdom, Ireland and Germany, Coinbase is currently expanding into France, Italy, Spain and the Netherlands. However, the American company decided to lay off 18% of its workforce a few weeks ago.
Despite a cryptocurrency market that has crashed dramatically in recent weeks, Coinbase views the future of the industry with optimism. That’s why one of the biggest cryptocurrency exchanges is betting on Europe.
In a blog post, the American company indicated that it wanted to move up a gear in its European development. “As part of our recently announced two-pronged growth strategy, we are leading a concerted effort to strengthen our presence in Europe”said the company headed by Brian Armstrong, who has also traveled to London and Dublin in recent days.
1100 jobs cut in June
Already present in the United Kingdom, Ireland and Germany, Coinbase is expanding into France, Italy, Spain and the Netherlands. This expansion comes in a delicate context on the cryptocurrency market, to which the American platform does not escape. In mid-June, Brian Armstrong announced the elimination of 18% of the platform’s workforce, or approximately 1,100 positions.
The company is indeed suffering the full brunt of the collapse of technology stocks and cryptocurrencies, despite a turnover of 7.8 billion dollars in 2021, up 513.7% compared to 2020. The first quarter 2022 had announced the color with a turnover of 1.2 billion dollars, down 53% year on year, and a net loss of 430 million.
The EU sets a new framework to regulate the ecosystem
Despite the wind of panic blowing on the cryptocurrency and NFT market, Coinbase does not intend to postpone its international development projects. “In times of market downturn, the temptation can be to turn away from international expansion. We first entered the UK and EU during the 2015 bear market, a move that paid off in the bull run a few years later. We will continue to build around the world and do everything possible to develop the cryptoeconomy”specifies the Californian firm.
Despite its European ambitions, Coinbase will have to deal with new rules on the Old Continent. Indeed, at the very end of the French EU Presidency, Council representatives and MEPs reached a provisional agreement on the MiCA (Markets in Crypto-Assets) regulation and the TFR (Transfer of Funds Regulation), thus paving the way for a true regulation of the ecosystem of digital assets in Europe.