As the EU’s landmark MiCA (Markets in Crypto-Assets) regulation comes into effect, two major U.S.-based exchanges – Gemini and Coinbase – are preparing to secure operational licenses in Malta and Luxembourg, respectively. This strategic move could reshape the crypto compliance landscape across Europe, igniting both opportunities and controversy.
Gemini and Coinbase MiCA Licenses Signal Strategic EU Expansion
Gemini, founded by Cameron and Tyler Winklevoss, has already received in-principle approval from Malta’s Financial Services Authority (MFSA) as early as February 2025. By May 8, Gemini was granted a full MIFID II license, allowing it to offer crypto derivatives and spot trading to professional investors throughout the EU.
Meanwhile, Coinbase is expected to receive its MiCA-compliant license from Luxembourg, enabling it to expand services across all 27 EU member states via the regulatory passporting mechanism.
Why Malta and Luxembourg?
Malta has emerged as an early mover in the MiCA licensing wave, previously fast-tracking licenses for OKX and Crypto.com. Gemini’s application in Malta suggests the firm is leveraging the country’s crypto-friendly environment to establish its EU base.
Luxembourg, known for its robust financial sector, offers Coinbase a reputable yet strict jurisdiction. According to Reuters, Coinbase plans to expand its workforce in Luxembourg to strengthen its European operations.
Regulatory Scrutiny and MiCA Concerns
Despite the excitement surrounding the Gemini and Coinbase MiCA licenses, regulatory concerns are mounting. French officials and EU policymakers have warned of a “race to the bottom,” as countries like Malta offer speedier approvals that might compromise investor protections.
The European Securities and Markets Authority (ESMA) currently lacks direct intervention power, raising concerns over inconsistent enforcement across member states.
Implications for the Crypto Market
The Gemini and Coinbase MiCA licenses could serve as a blueprint for other crypto firms navigating the post-MiCA environment. Both exchanges aim to use their new licenses to provide derivatives, trading, and other services across Europe.
Moreover, these developments illustrate the EU’s fragmented regulatory landscape, where national licensing strategies could clash with collective market oversight.
Future Outlook: Toward a Unified EU Crypto Policy?
As more exchanges pursue licenses under MiCA, the European Commission may face growing pressure to centralize supervisory authority within ESMA to ensure a consistent and high-standard application of MiCA.
In the meantime, the Gemini and Coinbase MiCA licenses remain a pivotal moment in the evolution of crypto regulation in Europe.
Final Thoughts
The licensing of Gemini in Malta and the upcoming license for Coinbase in Luxembourg show how MiCA is reshaping the European crypto landscape. As countries compete for crypto business, the balance between innovation and investor protection will be crucial. Whether this trend fosters long-term growth or sparks new risks depends on how unified and strict EU enforcement becomes.
