Regulatory Approaches to Cryptocurrency Licensing
According to a report from Reuters on June 14, regulatory authorities in various countries are taking diverse approaches regarding the issuance of operating licenses for cryptocurrency firms. This situation has paved the way for two major players in the crypto industry, Gemini and Coinbase, to potentially secure licenses enabling them to operate throughout the European Union (EU) under the recently implemented Markets in Crypto-Assets Regulation (MiCA).
Gemini’s License Application
Gemini, the cryptocurrency exchange co-founded by the Winklevoss twins, is reportedly on the cusp of receiving a license from the Maltese government, a nation noted for being the smallest member of the EU. Notably, Malta has previously granted operational licenses to other crypto exchanges such as OKX and Crypto.com shortly after MiCA was established.
Coinbase’s Prospective License
Meanwhile, speculation is rife regarding Luxembourg’s intentions to issue a license to Coinbase. Insiders suggest that while regulatory discussions are heating up, there are concerns that the scope of Coinbase’s intended operations in Luxembourg may be limited. In response to inquiries about their licensing application, a representative from Coinbase refrained from providing details but mentioned that the company employs around 200 individuals across Europe, focusing on maintaining robust operational security.
Impact on the Industry
As the landscape for cryptocurrency regulation continues to evolve within the EU, the upcoming approvals could mark a significant milestone for these firms and the broader industry.
