Coinbase, Gemini near coveted EU crypto license approvals under MiCA rules

U.S. crypto exchanges Coinbase and Gemini are in the final stages before being approved to operate across the European Union, Reuters reported on Monday. The two rivals are both set to receive their coveted crypto-asset service provider (CASP) authorization, under the standards set by the EU-wide Markets in Crypto-Assets (MiCA) ruleset. Coinbase is expected to be licensed by Luxembourg, where it intends to open an office, according to Reuters. Meanwhile, Gemini, co-founded by Tyler and Cameron Winklevoss, applied for an operational license from Malta in January of this year, a representative told The Block. Malta has granted similar approvals to OKX and Crypto.com.MiCA, a comprehensive set of regulations and guidelines, was drafted to create a unified approach to crypto oversight across the 27-member EU trading bloc. The rules came into full effect at the end of last year.Despite creating a unified standard, Reuters reported that some experts argue the CASP licensing process still creates opportunities for regulatory arbitrage. MiCA enables crypto-asset service providers to “passport” across the entire region, despite the possibility that different member states may follow different approval processes. Malta and Luxembourg, both small jurisdictions with long histories of financial regulatory specialization, are quickly becoming crypto licensing hubs — potentially creating a “race to the bottom.” The supra-national European Securities and Markets Authority, for instance, raised concerns following the $1.5 billion Bybit hack earlier this year. Malta authorities reportedly said that their “expedited processing” stems from “in-depth understanding acquired over these years.”That said, firms like MoonPay and Hidden Road have secured CASP authorizations in the Netherlands. At the same time, crypto custodian BitGo received its MiCA approvals from Germany last month, indicating that not all firms are going through Malta or Luxembourg. For its part, Gemini launched operations in France after receiving an updated virtual asset service provider (VASP) license in November, following the standards set by the Financial Action Task Force (FATF). CASP and VASP licenses differ in that CASP is specific to the EU’s MiCA framework and covers a defined set of services, while VASP is a global standard focused on AML compliance.The firm, which is looking to go public, notes that the EU represents a key part of its global strategy, and has hired three senior executives to lead its European expansion.Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.