Coinbase finds acceptance in Spain; continues to struggle in the US at the hands of the SEC

Coinbase is expanding its presence across the globe and rapidly at that, but mostly in Europe. In the United States, the exchange is finding it increasingly difficult to deal with the regulatory crackdown, which Coinbase is now facing indirectly, too.

Read more - Coinbase, along with Crypto.com, attempted to acquire FTX twice since the bankruptcy

Coinbase to offer crypto services in Spain

Coinbase made an announcement on September 25 that it had completed the registration with the Bank of Spain, allowing it to operate in the country and offer the full extent of its services. The European nation has a mandatory process for cryptocurrency exchanges, and registering with the central bank is the most crucial step. 

The world's second-biggest crypto exchange will now be able to offer custody of crypto assets, buy or sell crypto tokens in legal tender and trade cryptocurrencies against other digital assets.

As part of Coinbase's international expansion that began last year, Coinbase has managed to gain the approval of regulatory authorities to launch its services in Italy, Ireland, Netherlands, Brazil, Singapore and most recently, Canada.

Europe has been very accepting of crypto companies following the approval of the MiCA (Markets in Crypto Assets) bill earlier this year. This has attracted developers, investors and companies from around the world to build and invest in projects operating in and out of Europe. 

With the Spanish central bank registration, Coinbase would now be able to reach another 1.4 million people, which represents the total number of crypto users in Spain.

The United States continues to disappoint

While Europe has been very welcoming, the United States is doing the very opposite as it is driving away companies associated with crypto assets. One of the biggest contributors to this achievement is the Securities and Exchange Committee (SEC), which has been gunning for digital asset companies for years now.

Coinbase did not escape the regulatory body's crosshair as it faced a lawsuit in June from the SEC for allegedly violating securities law by offering unregistered securities. While the case is proceeding in court, the SEC is now attacking the exchange indirectly.

According to recent court filings by the regulator, the SEC is objecting to using Coinbase as a distribution agent for Celsius Network's Bankruptcy Restructuring. The bankrupt network planned to distribute digital assets to its customers through Coinbase. However, the SEC raised concerns about this, stating, 

"Coinbase "has acted as an exchange, a broker, and a clearing agency, without registering as an exchange, broker, or clearing agency.(sic)"

While Celsius confirmed it does not intend to use Coinbase for brokerage services, the SEC commented that the language in the Coinbase Agreements presents a contradiction. This latest development gives a taste of the atmosphere for the crypto market in the US.