The European Union's landmark Markets in Crypto-Assets (MiCA) regulation is paving the way for major cryptocurrency companies to operate across all 27 member states. This unified regulatory framework aims to bring the crypto sector under similar oversight as traditional finance, ensuring market integrity, financial stability, and consumer protection.
Two prominent crypto exchanges, Gemini and OKX, are among those making significant strides in securing these crucial licenses. Gemini is reportedly close to receiving its operating license from Malta, the smallest EU nation, which has strategically positioned itself as a crypto-friendly hub. Malta has previously granted similar approvals to other significant players like OKX and Crypto.com.
Luxembourg is also playing a key role in the licensing process, with companies like Coinbase reportedly seeking licenses from the Grand Duchy. The involvement of these smaller jurisdictions as specialized regulatory hubs reflects a pattern seen in European finance, where they leverage their expertise to attract new financial sectors.
While the MiCA regulation is welcomed for providing regulatory clarity and promoting innovation, the speed of licensing in some jurisdictions like Malta has drawn attention from other national regulators within the European Securities and Markets Authority (ESMA). Concerns about uneven enforcement and a potential "regulatory race to the bottom" have been raised, highlighting ongoing debates within the EU regarding the consistent application of MiCA across member states.
The MiCA framework, which became fully applicable in phases starting in December 2024, is designed to set a global benchmark for responsible crypto regulation. It introduces comprehensive requirements for offering crypto assets, trading them, and for crypto-asset service providers regarding authorization, operation, and supervision.
