Coinbase and Gemini, two leading U.S.-based cryptocurrency exchanges, are actively pursuing licenses under the European Union's Markets in Crypto-Assets (MiCA) regulatory framework. Coinbase is awaiting approval from Luxembourg, a prominent EU financial center, while Gemini aims to secure its license from Malta, known for its fast-track regulatory processing.
The MiCA framework enables firms with one member state license to operate seamlessly across all 27 EU member countries, significantly simplifying market entry through a passporting system. Both exchanges seek these licenses to expand their European operations, enhance compliance amidst growing regulatory scrutiny, and offer services legally and securely across the entire EU. Coinbase plans to bolster its Luxembourg presence with additional staff to support this expansion.
MiCA, implemented in stages since 2023, harmonizes crypto regulation across the EU, setting standards for licensing, consumer protection, market integrity, and stablecoins. Several other firms, such as ZBD, Bitstamp, MoonPay, Bitpanda, and Boerse Stuttgart Digital, have already received MiCA licenses from various member states, signaling EU regulators’ commitment to crypto oversight and market growth.
However, some regulators express concerns about the rapid and lenient license approvals in certain jurisdictions, particularly Malta, worrying about potential regulatory loopholes that could increase risks of financial crime or market instability. Despite this, both Coinbase and Gemini are expected to finalize their licensing processes in the near future, intensifying competition in the European crypto market.
Obtaining these licenses grants Coinbase and Gemini access to a unified EU market with over 400 million potential users, facilitating platform trust and consumer protections. The move also marks a significant evolution in the regulatory maturity and mainstream acceptance of crypto within major economic blocs, potentially paving the way for greater institutional participation and integration of crypto services in Europe’s financial ecosystem.