Coinbase and Gemini Near EU Crypto Licenses—But Some Regulators Are Wary
Two of the biggest names in crypto, Coinbase and Gemini, are reportedly close to securing licenses to operate in the European Union under the bloc’s new MiCA regulations. According to a Reuters report, Gemini is likely to get approval from Malta’s financial watchdog, while Coinbase is expected to land its license through Luxembourg.
But here’s the thing: even though MiCA sets the same rules for every EU country, enforcement falls to national regulators. And apparently, not everyone’s thrilled with how fast some licenses are being handed out.
How MiCA Licensing Works
The full MiCA rules for crypto service providers kicked in this January. Under the regulation, exchanges need a green light from one EU regulator to operate across the entire bloc—plus Iceland, Liechtenstein, and Norway. It’s a “passporting” system: get approved in one country, and you’re good for all of them.
Malta and Luxembourg seem to be the go-to choices so far. Back in January, OKX and Crypto.com both raced to announce they’d gotten MiCA licenses—from Malta, naturally—though neither explained why they picked that jurisdiction. Later, Bybit secured approval from Austria, while Bitstamp became the first exchange licensed by Luxembourg’s CSSF.
Now, Gemini and Coinbase look set to follow. But the speed of Malta’s approvals, in particular, has sparked quiet concerns.
Uneven Enforcement Worries
Reuters’ sources—anonymous, of course—say some regulators have grumbled in private about whether smaller countries have the resources to properly vet applicants. Malta’s Financial Services Authority (MFSA) has issued the most MiCA licenses to date, but it’s also one of the EU’s tiniest nations. Luxembourg isn’t much bigger.
A “senior regulatory official” told Reuters there’s unease about accepting licenses from jurisdictions with fewer staff. That’s not exactly a shock—if you’re a small regulator with limited manpower, corners might get cut. Or at least, that’s the fear.
Meanwhile, the EU’s top financial watchdog, ESMA, is angling for more power. Some want it to evolve into a European version of the U.S. SEC, with direct oversight instead of just coordinating national agencies. Former ECB chief Mario Draghi pushed the idea last year, and France’s finance regulator has already said it’s open to handing some authority to ESMA.
For now, though, ESMA hasn’t weighed in on the Malta and Luxembourg licenses—including the pending ones for Coinbase and Gemini. It has, however, promised to keep an eye on how MiCA’s being enforced across the bloc.
So, licenses are coming. But whether every regulator is playing by the same rulebook? That’s still up for debate.
