Coinbase and Gemini are reportedly advancing their EU presence by securing licenses from Luxembourg and Malta regulators, respectively.
According to sources, Winklevoss Twins-led Gemini is on the verge of obtaining a license in Malta. The crypto giant had already secured a Markets in Financial Instruments Directive II (MiFID II) license from the Malta Financial Services Authority (MFSA) last month.
Malta, the smallest country in the European Union, earlier approved licenses to exchanges, including OKX and Crypto.com.
EU member states were allowed to issue licenses for crypto firms under the new Markets in Crypto-Assets (MiCA) regulation that was implemented last year. The rollout has been one of the most significant regulatory shifts in Europe’s crypto landscape.
Malta’s Rapid License Approvals Raise Concerns Among EU Regulators
An unidentified senior regulatory official told Reuters that the pace of approvals from Malta and other nations, where there are fewer staff, is concerning.
However, per a spokesperson for Malta’s FSA noted that the “expedited processing” was due to “in-depth understanding acquired over these years.”
Malta has so far granted licenses to four crypto asset service providers, the representative added. Besides, OKX previously said that Malta’s licensing process was “rigorous” and its local money laundering standards were strict.
Luxembourg to Grant License to Coinbase
Luxembourg, which recently labelled crypto firms as “high-risk” entities for money laundering, is gearing up to grant a license to Coinbase.
One source pointed out that the size of the largest US-based crypto exchange’s intended operations in Luxembourg is relatively less.
With over 200 Coinbase employees in Europe, the exchange’s license application has been in progress for months. Coinbase has invested in staff to ensure smooth and safe operations in the EU region, a representative from the exchange noted.
Further, Luxembourg was a “high-bar, well-respected global financial centre,” the spokesperson said, adding that Coinbase plans to hire more people this year, at least 20.
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