Coinbase and Gemini are advancing their expansion in Europe by acquiring cryptocurrency licenses from Luxembourg and Malta, respectively. Coinbase aims to secure its license from Luxembourg, a globally respected financial center, and plans to increase its staff by at least 20 employees to support operations within the EU. Gemini, led by the Winklevoss twins, is on the verge of obtaining a license from Malta, leveraging the country's favorable regulatory environment known for rigorous processes and a reputation in crypto licensing.
This strategic move aligns both exchanges with the European Union's Markets in Crypto-Assets (MiCA) regulation, which affords licensed operators broader market access and regulatory clarity. Enhanced compliance with EU standards is expected to bolster the exchanges’ presence and operational capabilities across the continent.
Historically, similar licensing milestones by other exchanges such as OKX and Crypto.com have triggered increased liquidity and trading volume in European markets. Industry experts anticipate that these licensing efforts by Coinbase and Gemini could further drive crypto market growth in the region, provided regulations are applied consistently. However, some EU regulators have expressed concerns about the rapid pace of license approvals, particularly in Malta, although officials attribute expedited processing to accumulated regulatory experience.
Overall, securing these licenses is a critical step for Coinbase and Gemini, reflecting their commitment to regulatory compliance and growth in Europe's crypto ecosystem.