Coinbase Secures Game-Changing EU Crypto License via Luxembourg – Regulatory Green Light for Expansion

Coinbase just outmaneuvered the regulatory maze—snagging an EU-wide crypto passport through Luxembourg. No more nation-by-nation slog.

The Backdoor Play That Works

By securing approval from Luxembourg’s CSSF, Coinbase bypasses 26 other bureaucracies. One stamp, 27 markets. Traders win; compliance officers weep.

Why This Hurts Rivals

While Binance flails under MiCA scrutiny, Coinbase gets to scale overnight. The timing? Suspiciously perfect—like a Wall Street 'coincidence.'

The Fine Print

Full AML/KYC still applies, but now with 100% more euro liquidity. Watch institutional money flood in while decentralized purists grumble.

Coinbase didn’t just get a license—it got a monopoly starter kit. Regulators love orderly markets… until they don’t.

TLDR

• Coinbase received a MiCA license from Luxembourg, allowing crypto services across all 27 EU countries
• The license makes Coinbase the first major U.S. crypto exchange to operate under the unified EU crypto framework
• Luxembourg was chosen for its blockchain-friendly laws and regulatory clarity over other EU jurisdictions
• Coinbase joins OKX, Crypto.com, and other exchanges that have secured MiCA licenses in smaller EU countries
• The company will maintain its Dublin office with plans to hire 50 new employees despite the Luxembourg move

Coinbase has secured a Markets in Crypto Assets (MiCA) license from Luxembourg’s financial regulator. The approval allows the U.S. crypto exchange to operate across all 27 European Union member states.

The license was granted by the Commission de Surveillance du Secteur Financier (CSSF) after Coinbase met regulatory requirements. These include consumer protection standards and compliance measures for crypto operations.

Moien, Lëtzebuerg. 🇱🇺

We’re pleased to have secured our Markets in Crypto Assets (MiCA) licence from the CSSF in Luxembourg.

We can now offer a full suite of crypto products and services to 450 million people across all 27 European Union member states. pic.twitter.com/e9zbhy35YQ

— Coinbase 🛡️ (@coinbase) June 20, 2025

Luxembourg was selected over other EU jurisdictions due to its supportive regulatory environment. The country has passed four blockchain-related laws in recent years, creating a framework for digital asset operations.

Coinbase previously held separate licenses in Germany, France, Italy, Ireland, the Netherlands, and Spain. The MiCA license unifies these operations under a single EU-wide framework.

The company will maintain its Dublin office despite the Luxembourg move. Coinbase plans to hire 50 new employees in Ireland over the coming months.

Strategic Regulatory Shopping

The MiCA framework allows companies to obtain licenses in one EU country and operate across the entire bloc. This “passporting” system has drawn criticism from industry observers.

Critics argue that firms choose jurisdictions with fewer regulatory resources to ease approval processes. Luxembourg and Malta have emerged as popular destinations for crypto companies seeking MiCA licenses.

OKX, Crypto.com, and Bitstamp have also secured licenses through smaller EU member states. Malta fined OKX $1.2 million in April for past anti-money laundering compliance failures.

Peter Curk, CEO of ICONOMI, warned this approach could create a “race to the bottom” in enforcement standards. He said countries with lower regulatory capacity granting licenses could reduce consumer protection.

The European Securities and Markets Authority is reviewing Malta’s licensing process. The agency plans to produce a report on its findings.

Market Position and Compliance

Coinbase becomes the first major U.S. crypto exchange to operate under the unified MiCA framework. The license enables the company to offer custody, trading, and token issuance services across Europe.

The approval comes as other exchanges adjust their services to meet MiCA requirements. Binance delisted nine stablecoins for European users in March due to compliance issues.

Coinbase had previously announced plans to delist non-compliant stablecoins for European customers by December 2024. The MiCA regulations require stablecoin issuers to obtain e-money authorization in at least one EU member state.

The Luxembourg license positions Coinbase to compete with other major exchanges operating in Europe. The company already serves millions of users across European markets through its existing licenses.

Coinbase’s Luxembourg operations will benefit from the country’s established financial infrastructure and regulatory clarity for digital assets.