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What happened?
Gemini has secured a Markets in Financial Instruments Directive II (MiFID II) license from the Malta Financial Services Authority, allowing it to offer crypto derivatives throughout the European Union and European Economic Area. This milestone follows months of regulatory engagement, with Malta chosen as a strategic base due to its crypto-friendly environment. The license enables Gemini to expand its derivatives trading business and target advanced users in these regions.
Who does this affect?
This development primarily affects traders and investors within the European Union and the European Economic Area who are interested in crypto derivatives. It also impacts competitors in the crypto exchange market, as they will face increased competition from Gemini’s expanded offerings. Additionally, regulators and policymakers in Europe will be observing how this move aligns with ongoing regulatory frameworks and consumer protection standards.
Why does this matter?
The issuance of the MiFID II license to Gemini can significantly impact the European crypto market by increasing the availability and diversity of financial products. It enhances the competitive landscape as Gemini positions itself alongside other major exchanges like Coinbase and Kraken, both of which have recently made significant acquisitions. This heightened competition could lead to more innovation and potentially better pricing and service options for consumers across the EU, while also setting the stage for further regulatory discussions around crypto assets.
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