tl;dr
Crypto exchanges Gemini and Coinbase are nearing regulatory approvals to operate across the EU under the Markets in Crypto-Assets (MiCA) framework. Gemini is close to approval from Malta, known for its expedited licensing process, while Coinbase is expected to receive a license from Luxembourg, mark...
Crypto exchanges Gemini and Coinbase are on the brink of securing regulatory approvals to operate across the European Union under the Markets in Crypto-Assets (MiCA) framework. Gemini is close to receiving its license from Malta, a country noted for its swift and experienced crypto licensing process. Meanwhile, Coinbase is expected to gain approval from Luxembourg, which would mark the first US-listed crypto firm licensed under MiCA.
These forthcoming approvals have stirred tensions among EU national regulators concerning the speed and consistency of licensing enforcement. MiCA, effective since early this year, allows any member state to issue licenses valid across all 27 EU countries. However, some regulators warn that inconsistent enforcement might create regulatory blind spots in the growing crypto market, currently valued at approximately $3.3 trillion.
Malta’s fast-track licensing, backed by years of supervisory experience, has already seen OKX and Crypto.com granted licenses promptly under MiCA. Although Malta maintains stringent anti-money laundering checks, the European Securities and Markets Authority (ESMA) is reviewing the island’s licensing procedures. This scrutiny highlights wider concerns about a “race to the bottom,” where member states might undercut each other to attract lucrative crypto businesses.
On the other hand, Luxembourg is set to license Coinbase, signaling significant recognition for the American firm within Europe’s tightly regulated market. Coinbase plans to expand its Luxembourg operations significantly this year. Luxembourg’s financial authorities reject claims of lenient standards, attributing criticism in part to competitive dynamics across the EU.
This internal regulatory division occurs amid ongoing debates about expanding ESMA’s authority to ensure uniform enforcement of MiCA rules. The current system grants national agencies the licensing power, with Brussels providing the overarching regulatory framework. As the EU seeks to solidify its position as a global crypto hub, regulators balance investor protection with innovation amid lessons learned from past industry failures, such as the 2022 collapse of FTX.