Coinbase has achieved a major milestone by obtaining a MiCA license from Luxembourg’s financial regulator, allowing the company to operate across all 27 EU countries.
Importance of MiCA License
The MiCA license enables Coinbase to offer services such as spot trading, staking, and custody solutions in compliance with regulatory requirements. This opens access to a market of over 450 million users in the EU.
Competition in the EU Market
Coinbase joins a growing list of exchanges like Crypto.com and OKX that are also securing MiCA licenses. This creates a competitive environment where users can choose from a variety of regulated service providers.
Regulatory Environment in Luxembourg
By selecting Luxembourg as its regulatory base, Coinbase positions itself in a jurisdiction with strong regulatory frameworks, making it an ideal hub for financial firms. However, rapid licensing has raised concerns among some regulators about oversight quality.
The acquisition of the MiCA license marks a significant step for Coinbase and the entire crypto market in Europe, enabling faster scaling and enhancing consumer trust in cryptocurrency services.
