Two major cryptocurrency exchanges, Gemini and Coinbase, are poised to receive operational licenses under the European Union’s Markets in Crypto-Assets (MiCA) framework, according to multiple reports. Gemini will obtain authorization through Malta’s financial regulator, while Luxembourg is expected to approve Coinbase’s application, marking a significant expansion for both firms in the 27-nation bloc.
The licenses will enable both platforms to offer crypto trading, custody, and portfolio management services across all EU member states. This development follows earlier MiCA approvals for eToro and BitGo, signaling accelerated regulatory adoption since the framework’s full implementation in June 2024.
Malta’s Financial Services Authority has reportedly completed due diligence on Gemini’s application, while Luxembourg’s Commission de Surveillance du Secteur Financier (CSSF) is finalizing Coinbase’s approval. Both jurisdictions are recognized for their crypto-friendly regulatory environments.
Gemini’s European Expansion Strategy
Gemini has been preparing for this milestone since January 2025, when it appointed Mark Jennings as Head of Europe and Daniel Slutzkin as UK Market Lead. The exchange plans to establish Malta as its EU hub, leveraging the country’s existing crypto licensing framework that previously attracted Binance and OKX.
Key aspects of Gemini’s EU strategy include:
- Dedicated euro-denominated trading pairs
- Enhanced custody solutions for institutional clients
- Integration with European payment networks
Coinbase’s Luxembourg Footprint
Coinbase has chosen Luxembourg β home to other financial giants like PayPal and Amazon EU β for its MiCA compliance base. The exchange currently employs 200 staff in Europe and plans to add 20+ new positions in Luxembourg by year-end, focusing on compliance and customer support roles.
The company’s European operations now feature:
Service | Availability |
---|---|
Spot Trading | 40+ cryptocurrencies |
Staking | ETH, DOT, ADA |
Institutional Custody | Cold storage solutions |
MiCA’s Regulatory Implications
The MiCA framework establishes uniform rules for crypto asset service providers (CASPs), requiring:
- Proof of reserves audits
- Anti-money laundering controls
- Consumer protection safeguards
Some regulators have expressed concerns about potential regulatory arbitrage, as smaller EU nations compete to attract crypto firms with faster approval processes. The European Securities and Markets Authority recently warned against dilution of standards in its MiCA implementation guidelines.
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Market Impact: Analysts predict these approvals could trigger a wave of institutional investment into EU crypto markets. The bloc’s unified regulatory approach contrasts with the fragmented US landscape, potentially making Europe a more attractive destination for digital asset firms.
- MiCA
- The Markets in Crypto-Assets regulation establishes EU-wide rules for crypto service providers and stablecoin issuers.
- Regulatory Arbitrage
- The practice of companies choosing jurisdictions with less stringent regulations to operate under.
- Proof of Reserves
- A verification method ensuring crypto exchanges hold sufficient assets to cover customer balances.