Gemini and Coinbase Close to Securing EU Licenses Amid Regulatory Concerns

By: Eva Baxter

Crypto exchanges Coinbase and Gemini are reportedly on the verge of obtaining licenses to operate extensively within the European Union under the recently enacted Markets in Crypto-Assets (MiCA) regulations. This move comes as a significant step in their expansion strategies across the EU. According to insiders, while Gemini is eyeing an approval from Malta, Coinbase is expected to secure its license from Luxembourg.

The European market has become an attractive destination for major crypto firms due to the comprehensive and accommodating framework offered by MiCA, which permits any member state to issue a license that provides access to the entire 27-nation EU market. This regulatory advancement, hailed as a significant step towards integrating crypto oversight with traditional finance, has unfortunately sparked tensions among national regulators regarding the licensing speed and compliance oversight.

Malta seems to have accelerated its approval processes, using its extensive experience in supervising crypto businesses to streamline procedures. To date, the Malta Financial Services Authority has issued four crypto licenses, emphasizing that stringent anti-money laundering measures are still enforced. The European Securities and Markets Authority (ESMA) has reviewed Malta's procedures and plans to release an internal report, although it has abstained from commenting publicly.

Conversely, Luxembourg's first anticipated approval for a US-listed crypto firm–Coinbase–represents a crucial milestone under MiCA. Luxembourg has always maintained a stature as a respected financial nucleus, which fuels its appeal among global crypto enterprises. As regulatory authorities and lawmakers in the EU continue to deliberate on potentially expanding ESMA’s authority to safeguard consistent MiCA enforcement, the outcome of these licensing decisions is poised to influence Europe’s trajectory towards becoming a global crypto hub. Such developments aim to balance investor protection and the continent’s aspiration to lead in the crypto industry, despite past setbacks such as the collapse of FTX in 2022.