Crypto exchanges Coinbase and Gemini are close to obtaining licenses for legal operation in the European Union under MiCA regulations.
Progress Towards Licensing
Gemini is reportedly nearing the completion of its licensing process through Malta, which has already granted approvals to other major exchanges like OKX. Meanwhile, Coinbase is focusing its efforts on Luxembourg, where it awaits a decision on its application.
Regulatory Concerns
Some European regulators have raised concerns over the speed and consistency of licensing under MiCA. Key points include:
* Rapid approvals in countries like Malta and Luxembourg. * Fears that uneven enforcement could dilute MiCA's overall effectiveness. * France has expressed concern that limited regulatory authority might lower EU-wide standards. * A Luxembourg official denies claims of weak regulations, blaming criticism on competition among EU states.
Debates on Stablecoin Rules
Regulations regarding stablecoins under MiCA are also causing unease. The framework requires issuers to keep a "significant" portion of their reserves in EU banks. However, the lack of a clear definition of "significant" leaves uncertainty for companies. For instance, Tether, issuer of the popular USDT stablecoin, has opted out of MiCA as it does not want to hold reserves in European banks.
While MiCA aims to create a clearer regulatory environment for the crypto industry in Europe, its implementation and impacts on individual countries remain subjects of ongoing debate.
