June 16, 2025 — Brussels, Malta, Luxembourg — U.S.-based crypto giants Coinbase and Gemini are on the brink of securing full operating licenses under the European Union’s new Markets in Crypto-Assets (MiCA) framework—an achievement that would enable both platforms to offer regulated crypto services across all 27 EU member states.
The milestone is likely to be marked by Gemini receiving approval from Malta and Coinbase gaining regulatory clearance in Luxembourg. But the speed and uneven pace of licensing across member states are igniting debate among EU regulators about oversight standards, national competitiveness, and the future of MiCA implementation.
MiCA, the European Union’s comprehensive crypto regulation, came into force earlier this year. It allows a “passporting” system—once licensed in one member state, crypto firms can operate across the entire EU. Gemini, founded by the Winklevoss twins, is reportedly finalizing its license in Malta, following fast-track approvals of OKX and Crypto.com. Meanwhile, Coinbase appears poised for approval in Luxembourg, where it plans to grow its European workforce.
These approvals come amid concerns that smaller jurisdictions with rapid licensing—driven by limited regulatory resources—might weaken MiCA’s credibility. France’s AMF and other regulators are warning of a “race to the bottom,” urging the European Securities and Markets Authority (ESMA) to play a stronger supervisory role.
- Malta has a long history of crypto regulation, once branding itself as the “Blockchain Island.” Its early work and evolving licensing structures positioned it as a first-mover on MiCA enforcement .
- Luxembourg is better known as a traditional financial hub with a rigorous regulatory culture. Coinbase spokespersons highlight Luxembourg’s high standards and commitment to hiring compliance staff—a vote of confidence in the country’s financial oversight.
Yet concerns linger. Some EU officials fear uneven licensing procedures may allow firms to shop for friendlier regulators—a dynamic antithetical to MiCA’s goal of consistent rules.
Once licensed, both firms will be legally authorized to offer a full suite of services:
- Crypto trading pairs
- Institutional-grade custody
- Token issuance
- Staking and lending
They’ll also enjoy EU-wide authorization—allowing expansion beyond their central offices into any member market.
For Coinbase, this marks a major strategic milestone. Already a U.S. S&P 500-listed company with more than 108 million users and 200 EU employees, Luxembourg licensing will help scale its European presence while countering skepticism from more cautious regulators—like Ireland .
Gemini, with roots in Malta, plans to leverage its MiCA license to build liquidity, offer new services, and bolster its European market share under the guidance of Mark Jennings (Europe) and Daniel Slutzkin (UK) .
The rapid issuance of multiple MiCA licenses has prompted regulators to consider ESMA’s role carefully. While smaller countries like Malta and Luxembourg can act quickly, larger regulators—such as France’s AMF—question the substance behind speedy approvals. ESMA’s upcoming report on Malta is poised to influence the bloc’s path forward.
Discussions are already underway in Brussels to potentially grant ESMA enhanced powers to supervise crypto licensees directly—an acknowledgment that coordinated oversight may be necessary to safeguard investor and market integrity.
The entry of Coinbase and Gemini into the licensed EU crypto landscape is a catalyst for broader change:
- Regulatory legitimacy: Their presence under MiCA provides greater legitimacy and trust for retail and institutional users.
- Market maturity: EU-wide access fosters competition and product evolution among ETPs, tokenized assets, DeFi, and regulated staking.
- Institutional demand: These platforms meet the demands of professional capital allocators seeking robust compliance and legal clarity.
- Strategic repositioning: Ireland may need to overhaul its approach, while countries like Luxembourg and Malta reinforce their financial positioning.
Both firms are expecting final regulatory sign-off in the coming weeks. Once approved, they’ll begin onboarding users under their newly licensed EU entities.
- ESMA’s anti-arbitrage measures and recommendations could influence licensing in smaller nations.
- If EU politicians grant ESMA more supervision authority, the MiCA regime will shift toward a federated, Europe-wide oversight model.
- Competing firms—like Bitstamp, Kraken, and PayPal—will likely accelerate their EU license efforts to match Coinbase and Gemini’s momentum.
The imminent MiCA licensing of Coinbase and Gemini stands as a landmark moment for Europe’s crypto market. It signals the first wave of major non-EU firms integrating fully into a regulated EU framework—offering transparent, compliant services across the continent.
But progress comes with a caveat: the divergent licensing pace and national competition for firms could fracture MiCA’s uniform intent. As regulators debate ESMA’s future role, the EU’s crypto landscape is at a turning point.
The next few weeks aren’t just about licenses—they’re about shaping the future of regulated digital asset markets in Europe.