Coinbase has announced that it has obtained a license under the EU’s MiCA regulatory framework, enabling it to offer its services across 27 European countries.
The Significance of the MiCA License
The license granted by Luxembourg's Commission de Surveillance du Secteur Financier establishes Coinbase as a registered crypto asset service provider. This allows the company to operate within a unified European market without needing additional approvals from each member state.
"Over the past few years, Coinbase has worked closely with regulators across Europe," the company said. "Now, with MiCA, we are uniting these efforts under a single framework, enabling millions of Europeans to access regulated and trusted crypto services."
Coinbase's Strategy in Europe
Obtaining a license is an important step for Coinbase in its international expansion, especially with the growing scrutiny from the SEC in the US. The MiCA license allows the company to effectively serve both retail and institutional customers in Europe.
The firm noted its choice of Luxembourg was driven by the government's supportive stance on digital finance, as well as its history of licensing in countries like Germany, France, and Spain.
Potential Risks and Challenges
Despite these achievements, obtaining the license raises concerns over potential 'license shopping,' where companies choose jurisdictions with lighter regulations. This could lead to inconsistent enforcement standards across the EU.
Peter Curk, CEO of ICONOMI, expressed concern: "The debate isn’t just about licenses; it’s about the EU’s collective reputation in digital finance. Grants of licenses by countries with lower regulatory capacity could dilute consumer protection and cross-border trust."
The successful registration of Coinbase under MiCA marks a significant milestone in the evolution of cryptocurrency regulation in Europe. It promotes broader integration of crypto services in the region but requires attention to risks and the need for sustained enforcement standards.
