Gemini Coinbase Near EU Licenses Under MiCA Regulations

Crypto exchanges Gemini and Coinbase are reportedly on the verge of securing licenses to operate in the European Union, a significant development in their expansion efforts under the newly implemented Markets in Crypto-Assets (MiCA) regulations. According to sources familiar with the matter, Gemini is expected to receive approval from Malta, while Coinbase is anticipated to obtain its license through Luxembourg. A Coinbase spokesperson acknowledged Luxembourg as a “well-respected global financial center” but declined to comment on the specific application process.

These developments come as other major exchanges, such as Bybit, have already gained regulatory approval to operate in the EU under the MiCA framework. Bybit recently secured approval via Austria, and Binance updated its deposit and withdrawal procedures in Poland to comply with the MiCA regulations. The MiCA framework, which took effect in June 2024, aims to create regulatory consistency across the EU, strengthen investor protection, and promote financial stability. Full implementation of the regulations is expected to follow in December, after the European Securities and Markets Authority (ESMA) issues final guidance for EU member states.

While MiCA has been praised for bringing greater clarity to the crypto asset space, it has also sparked debate, particularly regarding stablecoins. One contentious provision requires stablecoin issuers to hold a “significant” portion of their reserves in European banks. This requirement has led to Tether, the issuer of USDt, declining to pursue registration under MiCA. However, at least 10 other stablecoins, including those issued by Circle, Crypto.com, Fiat Republic, and Société Générale, have been approved under the framework.

Despite the approval of several stablecoins, early signs suggest that stablecoin adoption under MiCA has been modest. In Italy, one of the EU’s largest markets, MiCA has not led to significant stablecoin adoption. Instead, interest has shifted toward “custodial and trading services,” according to Fabio Panetta, former European Central Bank official and current Governor of the Bank of Italy. This shift indicates that while MiCA provides a regulatory framework for stablecoins, other services within the crypto ecosystem may be gaining more traction.