The firm’s services will be the same as those provided by Coinbase Custody in addition to taking over all the staking activities performed by the exchange.
Major United States-based cryptocurrency exchange Coinbase has established an entity in Ireland to expand its crypto custody services to European institutions.
According to a Coinbase announcement published on Jan. 30, the new entity is called Coinbase Custody International and is based out of Dublin.
Coinbase Custody initially began offering staking for select cryptocurrencies in March 2019, and expanded that service to international the following November.
The advantages of a local operation
While Coinbase Custody has been serving European clients in the United Kingdom, Switzerland, Germany, Finland and the Netherlands since 2018, a new dedicated entity allows for completely localized service.
Per the announcement, this will bring the advantages of local staff, localized service-level agreements and clearer compliance with EU law:
“Europe is our fastest growing geographic segment and our international launch is a direct result of client demand. By offering our services from the same region in which our clients are located, it’s our goal that they will benefit from greater legal and regulatory clarity.”
Coinbase also said that, over the coming months, it plans to add support for more cryptocurrencies and features to its international custody service.
Furthermore, Ireland boasts some of the lowest corporate income tax levels in Europe which, despite the protestations of lawmakers to the contrary, has earned it a reputation as a tax haven. Indeed, the country has the third-lowest corporate income tax rate among OECD countries as of 2019.
Growing demand for custody
As cryptocurrencies solidify their position as a new financial asset class, demand for services such as crypto asset custody is increasing.
Rohan Barde, a research and innovation manager at industry expert association Blockchain Zoo, explained that custody services are needed to attract institutional investors who wish to reduce risk and comply with regulatory standards.
Bitcoin News Summary – December 2, 2019
Worth nearly $50 million in Ethereum, 342,000 ether was hacked from South Korea’s Upbit exchange. The hack occurred during maintenance and is one of the largest Ethereum thefts ever. The exchange has suspended operations for at least a couple of weeks but plans to repay users for the loss. It remains unknown how the attack was conducted.
In yet more bad exchange news, East Asian exchange IDAX Global reported that its CEO had vanished, reason unknown. All withdrawals and deposits have officially been halted, although some users had already reported having issues withdrawing their funds. These issues, along with the CEO’s disappearance have led to rumours of an exit scam.
Ethereum dev, Virgil Griffith, was arrested at Los Angeles International Airport for contravening the International Emergency Economic Powers Act. Against warnings, Griffith went to North Korea to present information which could be used by the regime to evade international sanctions or launder money. Griffith faces up to 20 years in jail.
Cryptocurrency exchange Coinbase has patented a self-learning compliance enforcer that shutters “bad” user accounts. The U.S Patent and Trademark Office-issued patent, describes an automated system accompanied by a scoring mechanism that together root out non-compliant user accounts – specifically ones suspected of trafficking in illegal activity.
And finally, German parliament has passed a new bill which would allow German banks to sell and store crypto, beginning in 2020. The bill still awaits approval from Germany’s states, but it stands as a sign that crypto adoption and mainstream financial integration has gathered serious momentum.
