Coinbase & Gemini Double Down on Europe: Fresh Licenses Signal Crypto Conquest
US crypto giants lock horns with regulators—and win. Coinbase and Gemini just secured EU footholds with new licenses, dodging the SEC''s wrecking ball back home.
The playbook: regulatory arbitrage
When America zigs, crypto zags. While Washington dithers, these exchanges are planting flags in friendlier jurisdictions. Smart? Absolutely. Desperate? Maybe a little.
Why Europe matters now
MiCA regulations kick in soon—these licenses let both firms operate across 27 nations with one approval. That''s 450 million potential customers who won''t need VPNs to trade.
The cynical take
Another day, another ''strategic expansion'' that looks suspiciously like regulatory panic. But hey—when life gives you lemons, open a lemonade stand in Malta.
Malta’s Rapid License Approvals Raise Concerns Among EU Regulators
An unidentified senior regulatory official told Reuters that the pace of approvals from Malta and other nations, where there are fewer staff, is concerning.
However, per a spokesperson for Malta’s FSA noted that the “expedited processing” was due to “in-depth understanding acquired over these years.”
Malta has so far granted licenses to four crypto asset service providers, the representative added. Besides, OKX previously said that Malta’s licensing process was “rigorous” and its local money laundering standards were strict.
Luxembourg to Grant License to Coinbase
Luxembourg, which recently labelled crypto firms as “high-risk” entities for money laundering, is gearing up to grant a license to Coinbase.
One source pointed out that the size of the largest US-based crypto exchange’s intended operations in Luxembourg is relatively less.
With over 200 Coinbase employees in Europe, the exchange’s license application has been in progress for months. Coinbase has invested in staff to ensure smooth and SAFE operations in the EU region, a representative from the exchange noted.
Further, Luxembourg was a “high-bar, well-respected global financial centre,” the spokesperson said, adding that Coinbase plans to hire more people this year, at least 20.
