Reports suggest that two major exchanges, Coinbase and Gemini, are on the verge of acquiring cryptocurrency licenses in the EU.
Reasons for License Applications
Operating legally and in compliance is crucial for cryptocurrency exchanges seeking long-term sustainable growth. The EU, with its unified market and substantial user base, represents an attractive target. However, navigating the regulatory landscape has been a complex task due to differing rules across member states.
Path to Licenses Under MiCA
Sources indicate that both Coinbase and Gemini are likely to receive their EU licenses soon. Gemini is expected to secure its license in Malta, while Coinbase aims for approval in Luxembourg. This allows them to operate under a ‘passporting’ framework, simplifying market access.
Impact of Licenses on the European Crypto Market
The potential entry of Coinbase and Gemini into the European market could significantly affect competition among local players. These licenses provide access to a vast market of over 400 million users and underscore the growing acceptance of cryptocurrency in major economic blocs.
The anticipated approval of Coinbase and Gemini licenses under the MiCA regulation marks a significant moment for the cryptocurrency industry in Europe, promising more opportunities and trust for users.
