The Winklevoss twins’ Gemini Trust Co. cryptocurrency exchange has achieved a major regulatory breakthrough in Europe by securing approval to launch crypto derivatives trading across the European Union and European Economic Area (EEA).
The exchange announced on May 9 that it has secured a Markets in Financial Instruments Directive II (MiFID II) license from the Malta Financial Services Authority (MFSA), allowing the exchange to offer crypto derivatives in the European Union.
Gemini sets the stage for EU-wide derivatives launch with MiFID II license
Mark Jennings, Gemini’s Head of Europe, noted that when they commence business activities, they can offer regulated derivatives throughout the EU and EEA under MiFID II.
The executive noted that Gemini’s upcoming derivatives offering will include perpetual futures and other derivatives, which will be available to advanced users of Gemini.
The license, issued on May 8 to Gemini’s Maltese entity, Gemini Intergalactic EU Artemis, allows the firm to offer sophisticated financial instruments—most notably, crypto derivatives such as perpetual futures—to both retail and institutional investors across the region.
Although Gemini hasn’t launched these products yet, the MiFID II license sets the stage for the exchange to begin offering perpetual futures and other complex instruments to experienced traders on its European platform in the coming months.
Jennings noted that they would be working towards meeting the required conditions to launch these products across Europe over the coming months.
The license further highlights Gemini’s expanding influence in the region. In December 2024, the exchange was granted a sixth VASP registration from the MFSA. Gemini named Malta its main partner for compliance with the European Union’s Markets in Crypto-Assets (MiCA) framework by January 2025.
But, to date, Gemini has not received its full MiCA license as of May 2025, though its current MiFID II approval is deemed an important precursor.
Crypto derivatives arms race heats up as Gemini joins Coinbase and Kraken in global expansion push
Gemini’s latest regulatory victory comes amid a surge in interest and activity surrounding crypto derivatives worldwide.
Just this week, on May 8, Coinbase made headlines with its $2.9 billion acquisition of Deribit, one of the globe’s largest crypto derivatives platforms.
The move followed Kraken’s announcement on May 1, confirming its $1.5 billion acquisition of derivatives trading platform NinjaTrader, signaling an arms race among major exchanges to capitalize on the rapidly growing derivatives market.
According to Bo Pei, an analyst at US Tiger Securities, Coinbase’s acquisition of Deribit strengthens its presence in international markets, particularly in Asia and Europe, where leveraged crypto trading is more common.
The cash-and-stock transaction will enable Coinbase to expand its global offerings by introducing crypto options—financial instruments widely used for hedging and often in demand during periods of market volatility.
Shares of Coinbase, which have fallen nearly 21% year-to-date, rose 5.7% following the news. The company already supports crypto futures trading for both U.S. and international users.
According to a blog post, the deal includes $700 million in cash and 11 million shares of Coinbase’s Class A common stock.
While Coinbase is still an emerging player in the derivatives sector, it achieved record market share in both retail and institutional derivatives trading in the last quarter. During this first quarter, shares of the first quarter revenue came shy of Wall Street’s expectations despite the growth in stablecoin revenue.
In the quarter ended March 31, Coinbase earned $65.6 million, or 24 cents per share, down from $1.18 billion, or $4.40 a share a year ago. Excluding the impact of crypto investments, Coinbase’s adjusted earnings were $527 million, or $1.94 per share.
Revenue rose to $2.03 billion from $1.64 billion a year ago but was shy of the $2.12 billion consensus estimate from LSEG.
Transaction revenue tallied $1.26 billion in the quarter, while subscription and services revenue reached $698.1 million in the quarter.
Gemini’s entry into the European derivatives space aligns it with these broader industry trends and signals the exchange’s ambitions to compete at the highest levels of global crypto finance.
As Gemini prepares to roll out its new derivatives suite across the EU and EEA, the exchange is poised to become a key player in a sector that is quickly becoming central to digital asset trading worldwide.
Your crypto news deserves attention - KEY Difference Wire puts you on 250+ top sites
Disclaimer: For information purposes only. Past performance is not indicative of future results.
