David Edwards
Two of the world’s leading cryptocurrency platforms, Gemini and Coinbase, are on the cusp of obtaining licenses to operate across the European Union under the bloc’s newly implemented Markets in Crypto-Assets (MiCA) framework, a major milestone for the evolving regulatory landscape of digital assets in Europe.
The MiCA regulation, which came into effect earlier this year, allows national regulators across EU member states to grant licenses that enable crypto companies to operate seamlessly across all 27 countries. While this unified framework aims to bring much-needed regulatory clarity to the industry, its implementation has already exposed divisions among EU regulators over licensing pace and supervisory standards.
Malta’s Fast-Track Approach Raises Concerns
Sources familiar with internal discussions have revealed growing unease within regulatory circles about the speed at which some countries are issuing licenses. Malta, the EU’s smallest member state, has approved licenses for major platforms such as OKX and Crypto.com within weeks of its new regime’s launch. Now, according to individuals briefed on the matter, Gemini—founded in 2014 by Cameron and Tyler Winklevoss—is set to obtain its MiCA license through Malta as well.
The Malta Financial Services Authority (MFSA), which currently oversees four licensed crypto entities, has defended its rapid process, citing years of accumulated experience and stringent anti-money laundering standards. Nevertheless, regulators from larger EU states, such as France’s Autorité des marchés financiers (AMF), have voiced concern that Malta’s expedited approvals could trigger a “regulatory race to the bottom,” especially as the European Securities and Markets Authority (ESMA) lacks direct supervisory authority over national licensing decisions.
A senior regulatory official, speaking anonymously, underscored concerns about the limited regulatory resources in smaller jurisdictions like Malta. ESMA is reportedly conducting a review of Malta’s licensing process, with findings expected to be published shortly. The agency declined to comment on ongoing investigations.
Coinbase Eyes Luxembourg for EU Base
While Malta garners scrutiny, Coinbase is progressing with its own European expansion by securing a license through Luxembourg. The San Francisco-based exchange, which became the first U.S. crypto-focused firm to enter the S&P 500, has been engaged in Luxembourg’s licensing process for several months. According to sources, Coinbase’s initial operations in the country will be modest, though strategically significant.
Coinbase established its Luxembourg entity, Coinbase Luxembourg SA, in late 2024 with €30,000 in share capital. Regulatory filings show that the subsidiary is managed by four directors, including Caroline Tarnok, Coinbase’s U.S. Head of Financial and Operational Risk, and David Farmer, Vice President of Products—all currently residing in Luxembourg.
The move is part of Coinbase’s broader EU growth strategy, which includes plans to increase its European workforce by at least 20 roles this year, building on its existing team of approximately 200 employees across the continent.
