Gemini and Coinbase Advancing Toward EU MiCA Licence Approval

Major crypto exchanges Coinbase and Gemini are close to securing licences to operate legally across the European Union (EU) under the Markets in Crypto-Assets (MiCA) regulation. With these licences, they would join other global exchanges like Bybit, which gained approval from Austria’s Financial Market Authority in May.

Coinbase and Gemini Near EU Approval Under MiCA

Gemini is reportedly close to securing its licence through Malta, which has already approved other major exchanges like OKX and Crypto.com. Meanwhile, Coinbase is focusing on Luxembourg, where its licence application has been under review for some time.

A Coinbase spokesperson said the company, which is now part of the S&P 500, has around 500 employees across Europe. It also plans to grow its Luxembourg team by adding 20 more staff this year.

MiCA took effect in June 2024 and was fully implemented by December after ESMA issued final guidance. The regulation aims to create consistent rules for crypto companies across the EU, protecting investors and supporting financial stability.

Binance, in January, adjusted how users in Poland make deposits and withdrawals so that its services would comply with the new EU law.

Concerns Over Malta’s Fast Licensing and MiCA Enforcement

Some European regulators have raised concerns about the speed and consistency of crypto licence approvals under MiCA. They worry that rushing approvals, especially in countries like Malta, could undermine the regulation’s goals.

Key concerns include:

• The pace of MiCA licence approvals in countries like Malta and Luxembourg.
• Regulators fear inconsistent enforcement could dilute MiCA’s overall impact.
• France has expressed concern that limited regulatory authority may lower EU-wide standards.
• A Luxembourg official denies weak rules, blaming criticism on competition among EU states.

Stablecoin Rules Stir Unease as EU Faces Unity Test

Concerns around MiCA have focused in particular on its rules for stablecoins. The regulation requires issuers to hold a “significant” portion of their reserves in EU-based banks. 

However, the term “significant” is not clearly defined, leaving room for uncertainty. This lack of clarity has made some companies cautious about committing to MiCA’s framework.

Tether, which issues the popular USDT stablecoin, has opted out of MiCA because it doesn’t want to hold reserves in European banks. Still, more than ten other stablecoins—such as those from Circle, Crypto.com, and Société Générale—have received approval under the new rules.

Although MiCA has brought clearer guidance to many parts of Europe’s crypto space, the uptake of stablecoins under the regulation has been relatively slow. The rules are in place, but market activity in this area has yet to gather momentum.

On a wider scale, cracks are beginning to show between EU member states. There’s an ongoing debate about whether the ESMA should have more power to make sure MiCA is applied the same way everywhere. 

Even though the EU has common rules and a shared market, individual countries are still competing to bring in global crypto businesses. That rivalry has raised concerns it could influence how the rules are enforced and may affect how effectively MiCA works across the bloc.

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