Cryptocurrency exchange Coinbase has been granted a Markets in Crypto Assets (MiCA) license by Luxembourg’s Commission de Surveillance du Secteur Financier (CSSF), enabling it to provide regulated crypto services across all 27 European Union member states. This marks Coinbase as the first major U.S. crypto exchange to operate under the unified EU crypto regulatory framework, which entered into force at the end of 2024.
Luxembourg was selected due to its blockchain-friendly regulatory environment, having passed multiple digital asset laws in recent years. The license consolidates Coinbase’s previously held licenses from individual European countries such as Germany, France, Ireland, Italy, the Netherlands, and Spain under a single EU-wide framework, simplifying operations and legal compliance across the bloc.
Coinbase has also established its European headquarters in Luxembourg while maintaining its Dublin office and plans to hire 50 new employees there. The MiCA framework is designed to enhance consumer protection and create uniform standards for crypto service providers in Europe.
Other exchanges including OKX, Crypto.com, and Gemini are also seeking or have secured MiCA licenses in different EU jurisdictions, highlighting the intensifying competition for a strong European footprint among crypto firms. Some critics warn that the 'passporting' system allowing companies to obtain licenses in smaller EU countries like Luxembourg or Malta might lead to lighter regulatory scrutiny.
The MiCA license enables Coinbase to offer custody, trading, and token issuance services EU-wide. This regulatory approval strengthens Coinbase’s position to compete against other prominent exchanges in Europe, especially following recent compliance-driven delistings of several stablecoins by Binance and others on European platforms.