Major Crypto Firms Eye EU Expansion
Two leading global cryptocurrency exchanges are on the cusp of securing licenses under the European Union’s Markets in Crypto-Assets (MiCA) regulation, enabling operations across all 27 EU member states. Effective earlier in 2025, MiCA aims to align the crypto industry with traditional financial oversight, but concerns over inconsistent licensing processes are sparking debates among regulators.
Gemini and Coinbase Lead the Charge
Gemini, founded by Tyler and Cameron Winklevoss, is nearing approval for a license in Malta, following the country’s swift endorsements of OKX and Crypto.com. Meanwhile, Coinbase, the first U.S. crypto firm to join the S&P 500, is expected to receive a license from Luxembourg, where it plans a modest operation with over 200 employees across Europe and an additional 20 hires by year-end. A Coinbase spokesperson highlighted Luxembourg’s reputation as a rigorous financial hub, emphasizing investments in safe operations.
Malta’s Fast-Track Approvals Under Scrutiny
Malta’s rapid issuance of four crypto licenses, including those for OKX and Crypto.com, has raised eyebrows among European regulators. The Malta Financial Services Authority attributes its speed to deep industry expertise and stringent anti-money laundering standards. However, critics, including France’s AMF, warn that smaller nations like Malta, with limited regulatory staff, risk fostering a “race to the bottom” that could undermine MiCA’s goal of uniform oversight. The European Securities and Markets Authority (ESMA) is reviewing Malta’s process, with a report expected soon.
Luxembourg’s Role and Ireland’s Retreat
Luxembourg’s anticipated approval of Coinbase has intensified regulatory discussions. A source familiar with Luxembourg’s stance rejected claims of leniency, suggesting some critics are driven by competition to attract crypto firms. Conversely, Ireland’s cautious approach, marked by Central Bank Governor Gabriel Makhlouf’s 2023 comparison of crypto to a Ponzi scheme, has diminished its appeal to the industry, positioning Luxembourg as a stronger contender.
Broader Implications for Crypto Oversight
The $3.3 trillion crypto market, scarred by events like the 2022 FTX collapse, faces heightened scrutiny for potential fraud and instability. MiCA seeks to provide clarity and consumer protection, but uneven enforcement across EU nations threatens its effectiveness. As ESMA head Verena Ross advocates for greater authority, some EU countries resist centralizing power, reflecting ongoing tensions between national autonomy and unified regulation. The outcome of these licensing disputes could shape the future of crypto in Europe and beyond.
thetechtrident.com 