According to a Reuters report on June 16, 2025, crypto – exchanges Coinbase and Gemini are close to obtaining regulatory approvals that will allow them to operate across the EU. However, this has led to intensified tensions among national regulators regarding the speed and oversight of new licensing under the EU’s crypto – framework. Here is a detailed introduction:
The EU’s Regulatory Framework: The EU’s Markets in Crypto – Assets (MiCA) regulation, which has been in force since the beginning of this year, enables any member state to issue a license that gives access to the entire 27 – nation market.
Gemini’s Situation: Gemini is close to getting approval from Malta. Malta has a reputation for quickly approving crypto licenses, having already licensed OKX and Crypto.com within weeks of MiCA’s implementation. The Malta Financial Services Authority spokesperson stated that four crypto licenses have been issued so far, with strict anti – money – laundering checks in place. However, the European Securities and Markets Authority (ESMA) has examined Malta’s licensing procedures and is preparing an internal report.
Coinbase’s Situation: Luxembourg is expected to grant a license to Coinbase, which would be the first approval for a US – listed crypto firm under MiCA. Coinbase, which is part of the S&P 500, has around 200 employees in Europe and plans to expand its Luxembourg office by more than 20 people this year. Luxembourg’s financial supervisor has not commented on the pending application, but an official familiar with the matter has refuted suggestions that the country’s standards are too lenient.
Regulators’ Clash: The rapid licensing by some member states has raised concerns among other regulators. France’s financial markets regulator has publicly warned that ESMA’s lack of direct licensing power could lead to a “race to the bottom” as countries compete to attract lucrative crypto businesses. Meanwhile, as lawmakers debate expanding ESMA’s authority to ensure consistent enforcement of MiCA rules, the EU is facing an internal split over licensing. National agencies retain licensing power, but this system is under pressure in the fast – moving crypto – industry.
The outcomes of these approvals will be crucial in determining how Europe balances investor protection with its goal of becoming a global crypto hub, especially considering the lingering memories of past industry scandals like the collapse of FTX in 2022.
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