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
Altcoins are taking widely diverging paths, with OI around $14 billionAltcoins are taking widely diverging paths. Some assets invite concentrated short positions, while others are longed, in expectation of a breakout. Altcoins are still inviting risky traders to take strong directional bets. According to Alphractal data, there are clear-cut categories of altcoins with minimal long/short ratios and a predominance of short positions. The most shorted […]
Altcoins are taking widely diverging paths. Some assets invite concentrated short positions, while others are longed, in expectation of a breakout. Altcoins are still inviting risky traders to take strong directional bets. According to Alphractal data, there are clear-cut categories of altcoins with minimal long/short ratios and a predominance of short positions. The most shorted […]
Elon Musk plans to give retail investors up to 30% of SpaceX’s IPOElon Musk is working on a plan to give retail investors as much as 30% of SpaceX when the company goes public, which is far above the usual 5% to 10% that regular investors get in most IPOs. According to Reuters, the plan is being discussed as SpaceX prepares for a listing that could value […]
Elon Musk is working on a plan to give retail investors as much as 30% of SpaceX when the company goes public, which is far above the usual 5% to 10% that regular investors get in most IPOs. According to Reuters, the plan is being discussed as SpaceX prepares for a listing that could value […]
BitMine Immersion Technologies (BMNR) stock is trading near $21.24, up just 4% over the past month, while Ethereum (ETH), the asset that underpins its entire treasury, has gained 14% in the same perio
President Donald Trump said on March 26 he would pause attacks on Iran’s energy infrastructure for 10 days, setting a new deadline of April 6 as talks continue. At first glance, that sounds like relie
President Donald Trump’s decision to pause attacks on Iran for 10 days has not brought clarity to crypto markets. Instead, it has extended uncertainty—and Bitcoin is already reacting.Bitcoin traded ne
