Gemini and Coinbase set to protect EU licenses
Coinbase and Gemini, two of the largest cryptocurrency firms globally, are set to acquire licenses to run across the European Union under the bloc’s new Markets in Crypto-Assets (MiCA) regulation. MiCA, which entered into force earlier this year, permits EU member states to issue licenses that grant crypto companies access to all 27 member countries. Sources familiar with the matter state the licensing process has triggered internal conflicts amongst regulators, with concerns raised over the rate and requirements of approvals in some jurisdictions. Two individuals briefed on the discussions, who requested anonymity, noted growing worry in personal discussions about inconsistent regulatory approaches.
Malta’s quick approval procedure sparks argument in the regulatory landscape. The guidance of the multi-trillion-dollar crypto industry is at risk. Regulators have repeatedly warned that this industry might cause fraud, market instability, and prohibited financial activities without proper oversight. As a result, MiCA is seeking to bring crypto under the same regulatory roof as traditional finance. Some individuals worry that uneven enforcement may damage its objectives.
Meanwhile, Gemini, an American cryptocurrency exchange established in 2014 by Cameron and Tyler Winklevoss, is set to acquire a license to trade from Malta, the smallest country in Europe, two individuals knowledgeable about the matter said. Malta previously approved licenses to OKX and Crypto.com just weeks after revealing its new regime. OKX said it went through an extensive application and that compliance is very crucial to the company. The speed at which Malta is approving these approvals has caught the attention of other national regulators who gather under the European Securities and Markets Authority (ESMA). France’s AMF has expressed concern that ESMA’s lack of direct power might lead to a ‘regulatory race to the bottom.’ A senior regulatory official, who asked to stay anonymous, discussed worries about accepting licenses from countries with less regulatory personnel, using Malta as an example. According to one source, ESMA is currently looking at Malta’s licensing process, and a report on this will be shared soon. Malta Financial Services Authority officials said that they have 4 crypto licenses. According to the representative, they can act quickly because of their experiences and the expedited processing they have learned over the years. The authority emphasized that its local anti-money laundering policies are strict. ESMA chose not to comment on the matter.
Coinbase nears Luxembourg license as EU expansion preparations accelerate. One of the individuals stated that the regulatory debate has intensified with expectations that Luxembourg will soon grant a license to Coinbase, the first US crypto-focused company to join the S&P 500. While Coinbase had been working on its application for several months, another source said that the size of Coinbase’s intended operations in Luxembourg is relatively small. Still, Coinbase already has a significant presence in Luxembourg, where it incorporated Coinbase Luxembourg SA in late 2024 with a share capital of EUR30,000. According to company registry filings, the subsidiary is managed by 4 directors, including Caroline Tarnok, Coinbase’s US Head of Financial and Operational Risk, and David Farmer, VP of Products. All directors are currently based in Luxembourg. The company plans to expand its European workforce by at least 20 roles this year on top of its 200 employees across the continent.
