Two major crypto firms—Gemini and Coinbase—are reportedly close to obtaining EU crypto licenses under the MiCA regulation. While this may streamline cross-border operations, it’s also triggering regulatory concerns over uneven approval speeds.
EU Crypto Licenses Offer Passporting Benefits
The Markets in Crypto-Assets (MiCA) framework, introduced in 2024, allows individual member states to grant crypto firms licenses that apply across all 27 EU countries. Gemini, founded by the Winklevoss twins, is close to being approved in Malta, while Coinbase is expected to receive its license from Luxembourg.
These EU crypto licenses are significant: they allow digital asset platforms to operate across the European Union without needing separate national approvals. However, some regulators argue that the licensing pace in countries like Malta may be too fast, risking inadequate oversight.
Malta’s Speed Sparks Debate Among EU Regulators
Gemini is not the first to benefit from Malta’s pro-crypto stance. Both OKX and Crypto.com were granted licenses within weeks of MiCA taking effect. This rapid turnaround has led France’s AMF to warn of a potential “regulatory race to the bottom.”
The European Securities and Markets Authority (ESMA) is reviewing the situation. A senior EU regulatory source noted concern over smaller countries issuing approvals with limited staffing resources.
Regulatory Scrutiny and ESMA Oversight
ESMA is expected to release a report on the licensing practices of member states like Malta. This comes as the EU crypto market grows rapidly, making proper enforcement critical to MiCA’s long-term success.
The EU crypto licenses issued under MiCA aim to increase consumer protection and reduce financial crime, aligning crypto with traditional finance regulations. However, uneven application could erode trust in the framework.
What This Means for Gemini, Coinbase, and the EU Market
For platforms like Coinbase and Gemini, EU-wide licensing offers a major opportunity for expansion across the region. But if inconsistencies remain, some national regulators may hesitate to recognize approvals granted elsewhere.
Malta’s Financial Services Authority has defended its approach, stating that its speed is the result of “years of regulatory experience” and a deep understanding of crypto businesses.
Conclusion
As Gemini and Coinbase seek EU crypto licenses, the broader conversation about regulatory rigor and fairness in the bloc continues. The balance between fostering innovation and ensuring compliance will define the next phase of crypto regulation in Europe.
