Coinbase Sets New EU Compliance Standard with MiCAR-Ready White Papers

Coinbase just upped the ante in crypto regulation—while traditional finance still struggles with fax machines.

The exchange rolled out MiCAR-compliant white papers, putting rivals on notice. No vague promises or regulatory dodges here—just bulletproof documentation that ticks every EU box.

Why it matters: Brussels isn't playing nice with crypto cowboys anymore. MiCAR's the new sheriff in town, and Coinbase just handed them a perfectly formatted badge.

Behind the move: A preemptive strike against the coming regulatory avalanche. While legacy banks drown in paperwork, crypto's proving it can out-compliance the suits at their own game.

One cynical footnote: Watch traditional institutions suddenly 'discover' blockchain's compliance benefits—right after finishing their 3-hour PowerPoint on why it's dangerous.

MiCA Obligations Might Not Yet Be Fully Understood

Andrea Pantaleo, Head of crypto Web3 & Fintech Sector at DLA Piper, explained:

“If you are an offeror or a trading platform offering crypto-assets – such as most crypto exchanges – MiCAR requires a MiCAR-compliant WHITE paper before you can legally operate within the European Union. Unfortunately, not everyone in the industry fully understands these obligations yet, but the situation is improving each day.”

The MiCAR white paper rules aim to enhance consumer protection and provide a clear overview of the asset in question. In the past, regulators debated how these requirements apply to different entities.

However, ESMA clarified this in its public statement titled “On the provision of certain crypto-asset services in relation to non-MiCA compliant ARTs and EMTs”.

“Before the ESMA statement, some companies found loopholes due to vague wording in the MiCAR regulation. That’s no longer an option. We’ll probably see the first enforcement actions soon,” Pantaleo added.

Crypto Risk Metrics Helps Clients Stay Compliant

When asked about the complexity of MiCAR and the questions required in the white papers, Tim Zölitz, CEO of Crypto Risk Metrics, replied:

“We don’t judge, we just try our best to protect our customers and make sure they act legally compliant. Personally, I understand some of the criticism. I even agree that certain MiCAR provisions place more burden on crypto-asset service providers in Europe than in other regions. But all regulation has its pros and cons. By using our services, companies can focus on what they do best while we make sure they comply with the law. That’s what we strive for.”

The concept seems to be working. Clients of Crypto Risk Metrics include Kraken, Bitpanda, OKX, Bitstamp, Clearstream, and Crypto Finance (Deutschland), which is part of the German stock exchange. Other well-known names also rely on their services.

Seems like the old saying still holds true:

Since coming into effect last year, the EU has approved 53 crypto firms under the MiCA regulations. However, major industry players like Binance and Tether missed out on the license.

The majority of these licenses have been granted by Germany. Yet, regulators have consistently debated the complexity of the MiCA.