Coinbase, a leading cryptocurrency exchange, has received approval to operate under the European Union’s new rules for cryptocurrencies, MiCA.
MiCA License for Coinbase
Coinbase has secured a license from Luxembourg’s financial regulator, the Commission de Surveillance du Secteur Financier (CSSF). This allows the company to legally provide crypto services in all 27 EU member countries.
Luxembourg as the Main Hub
Coinbase has chosen Luxembourg as its main location for operations in the European Union, a shift from its previous plans to set up its EU headquarters in Ireland. The MiCA license enables the exchange to offer crypto custody, trading, and asset management services. To obtain this license, Coinbase had to meet stringent rules that include anti-money laundering (AML) checks, Know Your Customer (KYC) processes, and customer ID verifications.
Bitstamp Also Secures MiCA License
In addition to Coinbase, Bitstamp has also received a Crypto Asset Service Provider (CASP) license under the MiCA regulation announced by Luxembourg’s financial watchdog in May. This approval came a few months after Bitstamp secured a MiFID license in 2024, enabling it to operate a Multilateral Trading Facility. The MiCA license allows Bitstamp to use the EU’s ‘passporting’ system, thus enabling it to offer services across all 27 EU countries without the need for separate approvals.
The acquisition of MiCA licenses by both Coinbase and Bitstamp highlights Luxembourg's growing significance as a digital finance hub and aligns with the efforts of crypto exchanges to comply with regulatory requirements in the EU.
