Coinbase and Gemini are about to get official approval to operate in the European Union from Luxembourg and Malta, as of June 16. This move follows new EU rules called MiCA, which let crypto companies work across all 27 EU countries with just one license.
Coinbase said it will grow its team in Luxembourg by hiring over 20 people this year to improve its operations and meet rules. A company spokesperson said Luxembourg is a trusted and respected financial center.
“Luxembourg is a high-bar, well-respected global financial centre and confirmed plans to increase its headcount in the country by more than 20 people by the end of the year to strengthen compliance and operations.”
Coinbase Spokesperson
Gemini will now be able to serve customers all across Europe thanks to its license from Malta. However, some officials in France and the EU’s financial authority (ESMA) are concerned that Malta is approving licenses too quickly, which could lead to weaker rules.
Fears about how quickly crypto licenses are being given
Sources told Reuters that some regulators are worried behind the scenes about how quickly crypto licenses are being given out. The main concern is that if the crypto industry isn’t closely watched, it could lead to fraud, unstable markets, or illegal money movement.
MiCA was created to make sure crypto companies follow the same rules as banks and other financial firms. But some regulators fear that if countries apply the rules differently, it could weaken the whole system. According to the british news agency.
As MiCA begins reshaping the crypto landscape across Europe, the balance between innovation and regulation will remain a key test. Now the question is; Will MiCA live up to its promise of unified oversight, or will national differences spark a new wave of regulatory challenges?