Coinbase and Gemini spark EU rift over crypto approvals
Malta and Luxembourg’s rapid crypto licensing has prompted scrutiny from EU watchdogs worried about a race to attract big firms.
Coinbase and Gemini are close to securing licences under the EU’s Markets in Crypto-Assets (MiCA) regulation, granting them access to operate across all 27 member states. The move marks progress on crypto oversight but has sparked concern over varying national standards.
Gemini is reportedly nearing approval in Malta, and it has quickly issued licences to other major exchanges like OKX and Crypto.com. Malta insists its fast-track process stems from years of experience supervising crypto firms and maintains robust anti-money laundering checks.
Meanwhile, ESMA has reviewed Malta’s licensing process and is preparing an internal report but has not publicly commented.
Coinbase is expected to receive a MiCA licence from Luxembourg, marking the first approval for a US-listed exchange. Some regulators claim Luxembourg is too lenient, but officials say such concerns stem from competition, not actual regulatory flaws.
The debate highlights growing pressure on the EU to ensure consistent enforcement of MiCA, primarily as the bloc aims to become a global leader in crypto regulation.
Lawmakers are now weighing whether to give ESMA greater authority, a move that could prevent what France’s regulator warned might become a ‘race to the bottom.’
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