The cryptocurrency exchange Gemini has received in-principle approval for an Investment Firm license from the Malta Financial Services Authority (MFSA), allowing Gemini to offer regulated futures and options across Europe.
Gemini's Licenses in Europe
Upon receiving the license, Gemini will be able to offer perpetual futures contracts in the European Economic Area (EEA) to advanced traders. The EEA consists of European Union member states, Iceland, Liechtenstein, and Norway. Gemini also has VASP licenses in France, Greece, Italy, Spain, and Ireland.
Licensing Procedures
Digital asset futures and options are regulated under the Markets in Financial Instruments Directive 2018 (MiFID II) framework, as they qualify as financial instruments, rather than Markets in Crypto Assets (MiCA) regulations. Kraken, another U.S.-based cryptocurrency exchange, received a MiFID II license earlier this year by acquiring a firm in Cyprus.
Challenges in the U.S.
Gemini's attempt to introduce a Bitcoin futures contract in the United States faced significant obstacles. The exchange was investigated by the Justice Department in 2017 and 2018 for price manipulation suspicions. Although no criminal charges were filed, the CFTC sued Gemini in 2022, claiming the exchange had misrepresented its capabilities to prevent price manipulation.
Gemini continues to expand its presence in the European market, obtaining licenses and approvals to provide services in various countries, despite facing some challenges in the American market.
