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| Gemini and Coinbase |
Markets in Crypto-Assets Regulation (MiCA) License is a mandatory and critical regulatory framework established by the European Union (EU) to govern crypto-assets management and related services.
Two of the biggest names in the crypto world, Coinbase and Gemini, are on the verge of getting approved under this EU’s MiCA rules. If the both companies can achieve this license, they'll be able to operate their crypto platforms across all the 27 EU countries.
Gemini, launched by Cameron and Tyler Winklevoss, is a crypto exchange where you can buy, sell, and store Bitcoin, Ethereum, and other digital currencies. On the other hand, Coinbase is the biggest U.S.-based crypto platform that lets users trade, hold, and manage a wide range of cryptocurrencies with a beginner-friendly app.
Both crypto companies are now pushing to get MiCA licenses. The MiCA Licenses standardize rules for crypto-asset service providers (CASPs) and issuers across all 27 EU member states. This, indeed, helps in replacing fragmented national regulations.
The License, which was officially launched earlier this year, is mandatory for any business that wants to offer crypto-related services in any EU country or all EU countries. The License brings all crypto-related businesses and all their crypto assets under a single regulatory body.
The main purpose of the MiCA Licensing is to ensure that compliance are kept with transparency, consumer protection, and anti-money laundering (AML) standards. These unlawful acts are commonly seen in cryptos and crypto-related activities.
Licensing moves By Gemini and Coinbase in the EU
Gemini is aiming for the MiCA License in Malta, a crypto-friendly hub, to offer trading, custody, and derivatives. Coinbase, on the other hand, is setting up in Luxembourg through Coinbase Luxembourg SA, through which it's planning to expand its EU workforce.
Meanwhile, people are worried that not all EU countries are enforcing MiCA rules the way it should be. They say Malta’s quick licensing process for companies like Gemini, Crypto com, and OKX is raising concerns. The European Securities and Markets Authority (ESMA) plus some bigger players like France concerned it might undermine MiCA’s goals of consumer protection and market stability.
What I'm saying in essence is that while MiCA aims to standardize crypto regulations with clear rules and strong consumer protections, Malta’s fast-track approach has some worried about a “race to the bottom” that could weaken the framework.
RELATED: Coinbase Launches Bitcoin Credit Card and USDC Payment on Shopify.
For Gemini and Coinbase, securing licenses in Malta and Luxembourg is a strategic win that'll unlock access to the EU’s 450 million-strong market for trading, custody, and token services. However, the licenses put both companies in positions to compete with existing players like Binance and Kraken in the EU vast market.
