Already present in the United Kingdom, Ireland and Germany, Coinbase is currently expanding to France, Italy, Spain and the Netherlands. However, the American company decided to lay off 18 percent of its workforce a few weeks ago.
Despite the cryptocurrency market falling dramatically in recent weeks, Coinbase is optimistic about the future of the industry. That’s why one of the biggest cryptocurrency exchanges is betting on Europe.
In a blog post, the American company indicated that it wants to accelerate its European development. “As part of our recently announced two-pronged growth strategy, we are making a concerted effort to strengthen our presence in Europe”announced the company headed by Brian Armstrong, who traveled to London and Dublin in recent days.
In June, 1,100 jobs were cut
Already present in the United Kingdom, Ireland and Germany, Coinbase is expanding to France, Italy, Spain and the Netherlands. This expansion comes in a delicate context in the cryptocurrency market, which the American platform does not escape. In mid-June, Brian Armstrong announced the elimination of 18% of the platform’s workforce, or roughly 1,100 jobs.
The company is indeed suffering the full brunt of the collapse of tech stocks and cryptocurrencies, despite revenue of $7.8 billion in 2021, up 513.7% from 2020. The first quarter of 2022 posted a color with revenue of 1.2 billion dollars, a decline of 53% year-on-year and a net loss of 430 million.
The EU sets a new framework for ecosystem regulation
Despite the winds of panic blowing in the cryptocurrency and NFT market, Coinbase does not intend to delay its international development projects. “In times of market downturns, the temptation may be to deter international expansion. We first entered the UK and EU during the bear market of 2015, a move that paid off in a run several years later. We will continue to build around the world and do everything we can to grow the cryptoeconomy”specifies the Californian company.
Despite its European ambitions, Coinbase will have to deal with new rules on the Old Continent. Indeed, at the very end of the French Presidency of the EU, the representatives of the Council and the representatives of the EP reached a provisional agreement on the regulation on MiCA (Markets of crypto-assets) and TFR (Transfer of Funds Regulation), thus paving the way for a real regulation of the ecosystem of digital assets in Europe.
