Recent developments in the European cryptocurrency sector have highlighted significant licensing moves by major platforms like Gemini and Coinbase.
Gemini Strengthens European Presence
Gemini, founded by the Winklevoss brothers, has secured an investment firm license from Malta under MiFID II. This license allows the company to extend its services across Europe, impacting derivatives trading.
Coinbase Seeks Luxembourg License
Coinbase is also making strides to secure a license from Luxembourg. Despite delays, the recent $2.9 billion acquisition of Deribit signifies Coinbase's strategic expansion into derivatives.
Impact of MiCA on Crypto Market
The launch of the MiCA regulation in the EU continues to evolve the regulatory framework for cryptocurrencies in the region. The precedent set by the Netherlands with ZBD obtaining the first MiCA license in 2024 marks a significant shift in regulatory dynamics. Under these new rules, confidence and liquidity in the cryptocurrency market are expected to increase significantly.
The actions of both Gemini and Coinbase underscore the changing landscape of cryptocurrency regulation in Europe, which may lead to greater trust from institutional investors and increased market liquidity.
