Recently, the cryptocurrency exchange Gemini, founded by the Winklevoss twins, chose Malta as its hub to comply with the MiCA framework in Europe.
Gemini's Choice of Malta for European Expansion
Gemini has highlighted that Malta’s proactive approach to supporting fintech innovation and the crypto ecosystem makes it the perfect location for the exchange to expand its operations in Europe. However, Gemini is yet to receive a MiCA license from Maltese financial regulators.
Impact of MiCA on Crypto Companies
The introduction of MiCA has led crypto companies to evaluate their product compliance within the EU, with many exchanges delisting non-compliant stablecoins and selecting operational hubs.
Uncertainty Over Stablecoin Regulation
Despite increasing clarity on crypto regulation in the EU, there is still uncertainty regarding how MiCA applies to certain stablecoins. Major stablecoin issuers like Circle received MiCA approval for its stablecoins. However, Tether, the issuer of the largest stablecoin by market capitalization, USDT, opposed MiCA regulation.
Gemini is actively expanding its presence in Europe by selecting Malta as its strategic hub while awaiting necessary regulatory licenses, despite uncertainties surrounding stablecoins.
