Under the MiCA regulation, Gemini and Coinbase have received licenses enabling them to operate across all 27 EU countries. This is a significant step for their influence in the European crypto market.
Licenses for Gemini and Coinbase in Europe
According to the new regulatory framework MiCA, Gemini, founded by the Winklevoss twins, will receive a license from Malta, while Coinbase is expecting approval in Luxembourg. These licenses will allow both crypto giants to operate within the entire European Union, significantly increasing their market presence.
Regulatory Concerns Over Licensing Speed
While these licenses are a significant victory for Gemini and Coinbase, they have also raised some regulatory concerns. Malta has been quick to issue licenses to major crypto players, including OKX and Crypto.com, raising alarms among the European Securities and Markets Authority (ESMA) and other national regulators like France, who fear a 'race to the bottom' in oversight standards. Nevertheless, Luxembourg maintains that its licensing process for Coinbase adheres to high regulatory standards.
U.S. Crypto Firms Expand EU Footprint
Both Gemini and Coinbase are actively expanding their businesses in Europe. Gemini, leveraging its Malta license, will be able to serve the entire EU. Coinbase, which has about 200 employees in Europe, plans to increase its presence in Luxembourg. With MiCA providing regulatory clarity, both companies are poised to strengthen their roles in the global crypto landscape.
The licensing of Gemini and Coinbase under MiCA opens new avenues for their operations in Europe and could serve as a foundation for their growth on the international stage. However, the speed of licensing raises concerns about oversight standards in the industry.
