Coinbase has said that it is working to acquire a MiFID-licensed entity. The aim is to expand access to its derivatives offerings in the EU. Only eligible customers would be entitled to claim the product once the deal falls in line, which is expected to happen by the end of 2024.
Coinbase has expressed its commitment to implement all the core functions after it has acquired the said entity. Functions here include KYC, sanctions requirements, and Anti-Money Laundering (AML). Plus, it will meet all five global compliance standards. This pertains to:
- Having a vetted and trusted team in place
- Industry-leading standards for KYC and AML
- Global sanctions enforcement
- Best practices for governance
- A rigorous monitoring and reporting process
To start with having a vetted and trusted team, Coinbase has said that any employee they hire will have to go through background checks and follow the culture of compliance. This is on top of understanding the policies and procedures of the company. Needless to say, employees who fail to meet the standards will be offboarded immediately.
AML and KYC standards will aid in maintaining fairness while tracking unauthorized activity on the platform. When it comes to reporting an ongoing money laundering operation, the goal is to adhere to the applicable legislation. It also strives to comply with international sanction regimes and ensure correct compliance for Europe, the United States, and other regions.
Monitoring and reporting practices entail that Coinbase undertakes periodic checkups on its operations. For instance, it must conduct an annual independent AML assessment of the entity it plans to acquire. That said, the entity will also be incorporated in line with the governance mechanism and board oversight.
Coinbase is confident that there is a lot to look forward to after the acquisition of the EU MiFID-licensed entity. The company has called this an exciting step, adding that it will bring a more global and open financial system to at least 1 billion people across the globe.
The move aligns with the mission of Coinbase, which is to fuel economic freedom for a billion people, irrespective of their geographic location. It specifically includes those who traditional institutions have not yet banked. Coinbase has even announced the Go Broad, Go Deep strategy to frame rules that help the company establish its presence without any hindrance.
At the core are the standards for global compliance. Any additional points that Coinbase incorporates are in line with the suggestions of the regulatory authorities of the land.
The current acquisition plan in the EU is subject to regulatory approval. There is no tentative date by which Coinbase will conclude the acquisition deal; however, the announcement has said that it expects the deal to go through later this year. It is only safe to assume that the acquisition will conclude by the end of 2024.