Coinbase nears Luxembourg license as EU expansion plans accelerate
Talks of regulation have gained momentum now that Coinbase is on the verge of getting licenses, allowing it to do business in the European Union.
Gemini and Coinbase set to secure EU licenses
Source Cryptopolitan
Coinbase and Gemini, two of the largest cryptocurrency firms globally, are set to obtain licenses to operate across the European Union under the bloc’s new Markets in Crypto-Assets (MiCA) regulation.
MiCA, which came into force earlier this year, allows EU member states to issue licenses that grant crypto companies access to all 27 member countries.
However, sources familiar with the matter say the licensing process has sparked internal disputes among regulators, with concerns raised over the pace and standards of approvals in some jurisdictions. Two individuals briefed on the discussions, who requested anonymity, noted growing unease in private talks about inconsistent regulatory approaches.
Malta’s quick approval process sparks debate in the regulatory landscape
The supervision of the multi-trillion-dollar crypto industry is at risk. Regulators have repeatedly warned that this industry could lead to fraud, market instability, and illegal financial activities without proper oversight.
As a result, MiCA is seeking to bring crypto under the same regulatory roof as traditional finance. However, some people worry that uneven enforcement might weaken its objectives.
Meanwhile, Gemini, an American cryptocurrency exchange founded in 2014 by Cameron and Tyler Winklevoss, is set to obtain a license to trade from Malta, the smallest country in Europe, two people familiar with the matter said.
Malta previously granted licenses to OKX and Crypto.com just weeks after unveiling its new regime. OKX said it went through a rigorous application and that compliance is extremely important to the company.
The speed at which Malta is granting these approvals has caught the attention of other national regulators who gather under the European Securities and Markets Authority (ESMA). France’s AMF has expressed concern that ESMA’s lack of direct power might result in a “regulatory race to the bottom.”
Moreover, a senior regulatory official, who asked to remain anonymous, mentioned worries about accepting licenses from countries with fewer regulatory staff, using Malta as an example. According to one source, ESMA is currently examining Malta’s licensing process, and a report on this will be shared soon.
Malta Financial Services Authority officials said that they have four crypto licenses. According to the representative, they can act quickly because of their experiences and the expedited processing they learned over the years.
The authority emphasized that its local money laundering regulations are stringent. ESMA chose not to comment on the matter.
One of the people said that the regulatory debate has intensified with expectations that Luxembourg will soon grant a license to Coinbase, the first US crypto-focused company to join the S&P 500.
While Coinbase had been working on its application for several months, another source said that the size of Coinbase’s intended operations in Luxembourg is relatively minor.
Still, Coinbase already has a notable presence in Luxembourg, where it incorporated Coinbase Luxembourg SA in late 2024 with a share capital of €30,000.
According to business registry filings, the subsidiary is overseen by four directors, including Caroline Tarnok, Coinbase’s US Head of Financial and Operational Risk, and David Farmer, VP of Products. All directors are currently based in Luxembourg.
The company plans to expand its European workforce by at least 20 roles this year on top of its 200 employees across the continent.
KEY Difference Wire: the secret tool crypto projects use to get guaranteed media coverage
Disclaimer: For information purposes only. Past performance is not indicative of future results.
Recommended Articles
Gold's Historic 2025 Rally: Can the Momentum Last Through 2026?Following a historic surge in 2025 that saw prices climb over 60% and break records more than 50 times, gold investors are now looking ahead to assess whether the precious metal can sustain its momentum into 2026. Despite outperforming most major asset classes and heading for its best annual performance since 1979, analysts are divided on the outlook—with some seeing further room for gains and others cautioning that risks are rising.
Following a historic surge in 2025 that saw prices climb over 60% and break records more than 50 times, gold investors are now looking ahead to assess whether the precious metal can sustain its momentum into 2026. Despite outperforming most major asset classes and heading for its best annual performance since 1979, analysts are divided on the outlook—with some seeing further room for gains and others cautioning that risks are rising.
Oracle's Weak Earnings Prompt Concerns Over AI Spending, Pressuring Nvidia and Industry RivalsOracle's disappointing earnings and soaring expenses have raised fears about AI spending sustainability, causing Nvidia and other related stocks to decline amidst heightened competition and concerns over mounting debt.
Oracle's disappointing earnings and soaring expenses have raised fears about AI spending sustainability, causing Nvidia and other related stocks to decline amidst heightened competition and concerns over mounting debt.
Cryptocurrencies Extend Losses as Year-End Caution and Thinning Liquidity Weigh on MarketThe cryptocurrency market declined on Monday, mirroring a pullback in global risk assets as investors turned cautious ahead of key U.S. economic data. The broad-based retreat highlighted thinning liquidity and growing risk aversion across financial markets as the year draws to a close.
The cryptocurrency market declined on Monday, mirroring a pullback in global risk assets as investors turned cautious ahead of key U.S. economic data. The broad-based retreat highlighted thinning liquidity and growing risk aversion across financial markets as the year draws to a close.
Asian equities advanced on Wednesday, supported by strong buying in technology shares, while oil prices surged more than 1% following an escalation of U.S. sanctions pressure on Venezuela.
BOJ Set to Hike Rates Amid Inflation Pressures and Yen Weakness
The Bank of Japan is expected to raise its benchmark interest rate to 0.75% on December 19, marking its first increase since early 2025, amidst ongoing inflation and a weakening yen. Analysts predict additional hikes in 2026 as the central bank navigates renewed monetary policy normalization under Governor Kazuo Ueda.
The Bank of Japan is expected to raise its benchmark interest rate to 0.75% on December 19, marking its first increase since early 2025, amidst ongoing inflation and a weakening yen. Analysts predict additional hikes in 2026 as the central bank navigates renewed monetary policy normalization under Governor Kazuo Ueda.
