Gemini Secures MiFID II License for EU Crypto Derivatives

Coin WorldFriday, May 9, 2025 6:52 pm ET
2min read

Gemini, the cryptocurrency exchange founded by Cameron and Tyler Winklevoss, has secured a significant regulatory milestone by obtaining a Markets in Financial Instruments Directive II (MiFID II) license from the Malta Financial Services Authority (MFSA). This approval, announced on May 9, allows Gemini to offer crypto derivatives, including perpetual futures, to advanced users throughout the European Union and the European Economic Area.

Malta's crypto-friendly regulatory environment played a crucial role in Gemini's decision to base its European licensing efforts there. The island nation is known for its supportive stance towards digital asset firms, making it an attractive hub for companies seeking access to EU markets. The MiFID II framework, which was launched in January 2018, enables companies to operate across EU member states through a system known as "passporting." This means that once licensed in one EU country, a firm can offer services across the region without requiring separate local approvals.

Gemini's Maltese entity, Gemini Intergalactic EU Artemis, was issued the MiFID II license on May 8. This license is a major step in the company's broader European expansion strategy. Mark Jennings, Gemini’s head of Europe, stated, “Once we commence business activities, we will be able to offer regulated derivatives throughout the EU and EEA under MiFID II.” The exchange is now working with regulators to meet the conditions for a full-scale launch of its derivatives platform.

Gemini plans to introduce a range of crypto derivatives in the coming months, beginning with perpetual futures for advanced users. The firm is also actively pursuing a Markets in Crypto-Assets (MiCA) license, which would allow it to provide a wider suite of regulated crypto services across the EU. This move is part of Gemini's broader strategy to expand its global derivatives offerings and cement its role in the evolving European crypto regulatory environment.

Gemini's latest EU license marks another step in the crypto exchange's global ambitions. In January, the firm named Malta its European hub for compliance under the MiCA framework, indicating its intent to anchor deeper within the EU regulatory fold. This followed Gemini’s sixth virtual asset service provider (VASP) registration in Europe, secured from Malta’s Financial Services Authority in December 2024. However, the exchange is still awaiting full MiCA authorization.

The expansion of derivatives comes as competition in the space intensifies. On May 8, Coinbase revealed a $2.9 billion deal to acquire Deribit, one of the world’s top derivatives platforms. A week earlier, Kraken confirmed its $1.5 billion acquisition of NinjaTrader, targeting futures trading. Meanwhile, Gemini is also growing stateside. The firm signed a lease for a new office in Miami’s Wynwood Art District, as its long-standing battle with the U.S. Securities and Exchange Commission (SEC) shows signs of winding down. In March, a federal judge ordered a 60-day pause in the SEC case over Gemini Earn, giving both parties time to negotiate. The company filed confidentially earlier this year, paid a $5 million CFTC fine, and is reportedly preparing for an IPO.

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