In a significant development for the global cryptocurrency market, major exchanges Gemini and Coinbase are reportedly on the verge of securing operational licenses within the European Union. This move signals a substantial expansion for both platforms under the bloc’s recently implemented Markets in Crypto-Assets (MiCA) regulations.
Sources familiar with the matter, as reported by Reuters on Monday, indicate that Gemini is expected to receive approval from Malta, while Coinbase is anticipated to obtain its license through Luxembourg. While a Coinbase spokesperson declined to comment on the specific application, they emphasized Luxembourg’s standing as a “well-respected global financial center.”
This push into the EU positions Gemini and Coinbase alongside other prominent exchanges that have already made strides under the MiCA framework. Notably, Bybit recently gained regulatory approval to operate in the region via Austria, and Binance updated its deposit and withdrawal procedures in Poland in January to comply with the new regulations.
The MiCA framework, which saw its regulations take effect in June 2024 with full implementation following in December after the European Securities and Markets Authority (ESMA) issued final guidance, aims to establish regulatory consistency across the EU. Its core objectives include strengthening investor protection and promoting financial stability within the rapidly evolving crypto asset space.
While MiCA has been largely welcomed for bringing greater clarity to the crypto market, it hasn’t been without its points of contention, particularly concerning stablecoins. Chainalysis has noted that the rules still leave “some room for interpretation and uncertainty” in this area.
A contentious provision within MiCA requires stablecoin issuers to hold a “significant” portion of their reserves in European banks. This requirement has been a key reason why Tether, the issuer of USDt, has opted not to pursue registration under the framework.
Nevertheless, at least 10 other stablecoins have received approval under MiCA, including those issued by Circle, Crypto.com, Fiat Republic, and Société Générale, among others.
