Coinbase and Gemini are making significant strides in expanding their presence in the European Union by securing licenses from regulators in Luxembourg and Malta, respectively.
Gemini, led by the Winklevoss Twins, is reportedly on the brink of obtaining a license in Malta. The crypto exchange had already obtained a Markets in Financial Instruments Directive II (MiFID II) license from the Malta Financial Services Authority (MFSA) last month. Malta, despite being the smallest country in the EU, has been actively approving licenses for various exchanges, including OKX and Crypto.com.
The European Union member states were granted the authority to issue licenses for crypto firms under the new Markets in Crypto-Assets (MiCA) regulation that was implemented last year. This regulatory shift has been one of the most significant developments in Europe’s crypto landscape.
However, Malta’s rapid approval of licenses has raised concerns among EU regulators. A senior regulatory official expressed worry about the pace of approvals in countries like Malta, where there are fewer staff members. In response, a spokesperson for Malta’s FSA explained that the quick processing was a result of the agency’s extensive knowledge and experience in the field. Malta has already granted licenses to four crypto asset service providers, with OKX praising the rigorous licensing process and strict money laundering standards.
In Luxembourg, Coinbase is set to receive a license from the authorities. Despite the country recently categorizing crypto firms as “high-risk” for money laundering, Coinbase’s operations in Luxembourg are relatively small. With over 200 employees in Europe, Coinbase has been working on its license application for months. The exchange has invested in hiring staff to ensure seamless and secure operations in the EU region. Luxembourg is recognized as a high-bar, reputable global financial center, and Coinbase plans to expand its team by hiring at least 20 more employees this year.
The efforts by Coinbase and Gemini to secure licenses in Luxembourg and Malta demonstrate their commitment to expanding their presence in the EU market. The regulatory approvals will allow them to offer their services to a wider audience and strengthen their position in the competitive crypto industry.