Gemini, one of the leading cryptocurrency exchanges, has recently received in-principle approval from Malta’s financial regulator for an investment firm license. This approval is a significant milestone for Gemini as it paves the way for the exchange to offer regulated crypto services across the European Economic Area (EEA).
The approval from the Malta Financial Services Authority (MFSA) is a crucial step in Gemini’s European expansion strategy. The exchange plans to use Malta as its primary base for its Markets in Crypto-Assets (MiCA) application. A full MiCA license would allow Gemini to provide compliant and secure crypto services throughout the region.
In addition to the MiCA application, obtaining the full investment firm license would enable Gemini to offer regulated futures and options under the Markets in Financial Instruments Directive (MiFID II). This expansion of services would include perpetual futures trading across Europe, catering to the growing demand from both institutional and retail investors.
Mark Jennings, Head of Europe at Gemini, emphasized the importance of this approval in the company’s long-term vision. He noted the increasing demand for crypto derivatives, especially among institutional investors, as the market continues to mature. Gemini also highlighted that the regulatory progress would enhance its service offerings, complementing its existing products such as the spot exchange, ActiveTrader™, OTC desk, and eOTC trading systems.
Gemini’s European expansion is part of a larger trend in the cryptocurrency industry, with many firms strengthening their presence in the region. Major exchanges like Coinbase, Kraken, Crypto.com, and OKX have all announced plans to enter or expand in Europe ahead of the full implementation of MiCA.
MiCA, which was adopted by the European Union in 2023, is a landmark regulatory framework for digital assets in a major economic bloc. The framework aims to standardize regulations across the EU, enhance consumer protections, and reduce regulatory fragmentation. It will make it easier for crypto firms to operate across multiple jurisdictions under a single regulatory framework.
Overall, Gemini’s approval for an investment firm license in Malta marks a significant step in its European expansion strategy. With plans to offer regulated crypto services across the EEA and expand its product offerings to include perpetual futures trading, Gemini is well-positioned to capitalize on the growing demand for cryptocurrency services in Europe.