Exchanges Gemini and Coinbase have obtained licenses to operate in European Union countries under the Regulation on Crypto Assets (MiCA). This development could have a significant impact on the cryptocurrency market in Europe.
Licensing Approval from Malta and Luxembourg
Gemini and Coinbase are expecting to receive licenses from Malta and Luxembourg respectively. These licenses will allow both exchanges to expand their operations across the entire EU, affecting the dynamics of the crypto asset market.
Expansion of Trading Services and Expectations
With the licensing secured, both exchanges will be able to offer their trading and staking services throughout Europe. This expansion is expected to impact their revenues and market share, with increased trading activity in key assets like BTC and ETH.
Potential Outcomes and Industry Reactions
The licensing comes in light of ongoing regulatory adjustments under MiCA, allowing a single member state license to provide EU-wide access. However, some national watchdogs have expressed concerns regarding the rapid pace of licensing in smaller countries like Malta, which may lead to compliance issues.
CITE_NA: 'Some national watchdogs aren't so sure about how fast things are moving, especially in smaller countries like Malta. Their concern? That light-touch reviews could let poorly vetted firms slip through the cracks and still operate across the EU.'
The licensing of Gemini and Coinbase under MiCA opens up new opportunities for the cryptocurrency market expansion in Europe, yet the rapid licensing pace raises questions about regulatory compliance.
