What happened?
Coinbase and Gemini are expanding their operations in the European Union by securing licenses from regulators in Luxembourg and Malta. Gemini is close to obtaining a license in Malta, which follows their recent acquisition of a Markets in Financial Instruments Directive II (MiFID II) license from the Malta Financial Services Authority. Similarly, Coinbase is set to receive a license from Luxembourg, despite the country recently identifying crypto firms as high-risk for money laundering.
Who does this affect?
This development affects the crypto exchanges Coinbase and Gemini, their employees, and potential customers in the European Union. For Coinbase, with over 200 European employees, this expansion means more job opportunities and enhanced operations across the EU region. Customers in the EU will have greater access to crypto trading through these licensed exchanges.
Why does this matter?
The licensing of Coinbase and Gemini in the EU signifies a critical step in bridging regulatory compliance and market accessibility for cryptocurrency firms. This move could strengthen investor confidence and increase market activity within the EU, further integrating crypto assets into mainstream finance. As these exchanges comply with stringent regulatory standards, it may also encourage other crypto firms to follow suit, potentially leading to a more robust and reliable crypto market in Europe.