Two of the world’s largest cryptocurrency firms, Gemini and Coinbase, are on the verge of obtaining licenses to operate in the European Union (EU), which take a significant
Two of the world’s largest cryptocurrency firms, Gemini and Coinbase, are on the verge of obtaining licenses to operate in the European Union (EU), which take a significant step forward under the newly implemented markets of the European Union in Crypto assets (MICA) regulation. However, this progress has highlighted the increasing rift between national regulators, questioning the stability and fairness of crypto licensing throughout the block.
Micah, which came into force earlier this year, aims to bring cryptocurrency under a harmonious regulatory structure in 27 member states of the European Union. Its goals include protecting investors, preventing illegal activities, and ensuring market integrity – much like traditional financial markets. Under Micah, once a crypto firm obtains licenses from a member country, it can work in all European Union countries. This concept, known as “passporting”, means streamlining market access. However, different speeds and standard disputes of national regulators are becoming a point.
Malta has been the fastest in giving license related to Mica. The Crypto Trading platform Gemini, installed by Tyler and Cameron Vinklevos, is expected to obtain his license from Malta soon, sources say. It follows the same approval for OKX and Crypto.com, which is given within the weeks of the launch of MICA.
Malta’s rapid approval has expressed concern among other European Union regulators, especially within the European Securities and Markets Authority (ESMA). Some officials are concerned that such rapidly tracked licenses may come at the cost of hard work. French market regulator AMF has publicly warned of a potential “regulatory race down”, highlighting that a limited inspection of ESMA could weaken the asbestos’ effectiveness.
A senior regulatory officer expressed concern over the credibility of the license from countries with low regulatory employees, named Malta as an important example. While the Malta Financial Services Authority (MFSA) defended its functions, saying that the speed experience and a result of the strong-man laundering standards were a result, ESMA is preparing a review of the licensing process of Malta.
Meanwhile, Luxembourg is expected to approve a license for the U.S.-based Crypto Exchange Coinbase, which is a significant seen step since the coinbase is the first Crypto-focused company to enter S&P 500. The company’s application has been reviewed for several months.
Luxembourg, known for its stringent financial standards, has emphasized that its licensing process is completely. A spokesperson of the coinbase refused to comment on the application specifically, but said that the company employs 200 people across Europe and is committed to compliance. By the end of 2025, the Coinbase plans to hire 20 more people in Luxembourg.
Despite its high regulator bar, some critics argue that Luxembourg’s decision may be influenced by the desire to attract crypto firms from contestants such as Ireland. Ireland, once a favorable destination for digital assets, has taken a more cautious approach. Central Bank Governor Gabriel Makhaloff compared the first crypto investments for gambling and called many projects as “Ponzi Schemes”.
Regulatory division within the European Union is becoming more pronounced because member states adopt different views to implement the asbestos. While the Brussels provides legal framework, the enforcement remains largely in the hands of individual nations. This patchwork of the oversight creates opportunities for regulator arbitration – where companies select courts with a low investigation.
To address this, some European Union policy makers are proposed to provide maximum rights to the ESMA directly oversee crypto firms. ESMA President Verena Ross has publicly supported the idea, arguing that strong central supervision is necessary to ensure the stability of the market. However, some member states are reluctant to give up national control, fearing that it may limit their ability to attract global firms and tax revenue.
The widespread concern is that inconsistent implementation may obstruct the mission of Micah to protect consumers and financial markets. If the countries apply different standards, the firms can at least move towards the stringent courts, which increases the risk of another crypto-related crisis in 2022, which shook global confidence in the digital asset market.
With the global crypto market, it is now a value of more than $ 3.3 trillion, it is more important to establish trusts and regulatory consistency than ever. While the asbestos is a step in the right direction, its success will depend on how equally it is implemented. The coming months will be important as ESMA publishes its review and more companies seek PAN-European License.
To become a crypto hub, the running between the member states should not come to the cost of the sound regime. What European Union can balance innovation with security, will determine his future role as a global leader in digital finance.
MiCA (Markets in Crypto-Assets) is a regulatory framework introduced by the European Union to bring crypto assets under a common set of rules across all member states, aiming to ensure investor protection and market stability.
Malta has issued licences rapidly under MiCA, prompting concerns from other regulators about whether due diligence and compliance standards are being upheld rigorously.
Gemini and Coinbase are among the top crypto companies nearing EU-wide licences. Gemini is expected to receive its licence from Malta, while Coinbase is eyeing Luxembourg.
ESMA, the European Securities and Markets Authority, oversees financial markets in the EU. While it doesn’t issue licences, it monitors regulatory practices and is seeking more power to oversee crypto firms directly under MiCA.
Inconsistent enforcement of MiCA among EU countries may lead to regulatory arbitrage, where firms choose less strict jurisdictions, potentially undermining investor trust and increasing financial risk.
