The Winklevoss twins-founded cryptocurrency exchange Gemini aims to comply with European crypto regulations by setting up a dedicated hub in Malta.
Gemini and European Regulations
Gemini chose Malta as its hub for compliance with the EU’s MiCA framework shortly after acquiring its sixth European VASP license from the Malta Financial Services Authority in December 2024. Malta's proactive approach to supporting fintech and the crypto ecosystem provides an ideal environment for Gemini to expand its European operations.
Elements of MiCA Compliance
Organizing a compliant services infrastructure was crucial for MiCA compliance. This includes unifying onboarding processes to meet regulatory standards across Europe. The biggest challenge was allocating resources to build the necessary infrastructure to support MiCA.
Impact of MiCA on Stablecoins
MiCA clarifies regulation across Europe but leaves some uncertainty for stablecoins. While major stablecoin issuers like Circle with USDC received MiCA approval, Tether's opposition raises questions about USDT's status in the EU.
The establishment of a Malta hub and MiCA compliance reflect Gemini's strategic effort to build a resilient European presence despite some uncertainties surrounding stablecoins.
