Coinbase and Gemini Ignite Tension in EU Over Crypto Approval Process

Malta and Luxembourg’s swift crypto licensing has raised alarms among EU regulators over a possible competition to attract major firms. Coinbase and Gemini are on the verge of obtaining licenses under the EU’s Markets in Crypto-Assets (MiCA) regulation, which would enable them to operate across all 27 member states. While Malta has quickly issued licenses to exchanges like OKX and Crypto.com, concerns persist about inconsistent national standards in crypto oversight. Malta claims its expedited process is based on extensive experience and strong anti-money laundering measures. Meanwhile, ESMA is reviewing Malta’s approach but has yet to issue public statements. Coinbase’s anticipated license from Luxembourg would be a first for a US-listed exchange, although some critics argue Luxembourg’s regulations are too lenient. This situation underscores the EU’s need for uniform MiCA enforcement, as officials contemplate giving ESMA enhanced authority to avert a potential regulatory “race to the bottom.”

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