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- Gemini and Coinbase are set to secure EU-wide crypto licenses from Malta and Luxembourg.
- Malta’s quick approvals spark debate over regulatory standards.
- ESMA prepares to assess and possibly tighten oversight frameworks.
Gemini and Coinbase are close to winning licenses to operate across the entire European Union. These approvals fall under the newly enforced MiCA regulations. Gemini is applying in Malta. Coinbase is seeking approval from Luxembourg.
Both licenses would allow them to serve customers in all 27 EU countries. This approval is a big step toward crypto service across the continent. The licenses fit into the MiCA framework, which rolled out earlier this year. It will pop to provide clarity and predictability in Europe’s regulation of crypto.
Malta’s Speed Raises Oversight Questions
Malta has already issued licenses to Crypto.com and OKX. These were granted just a wink after the enactment of MiCA. Gemini may be the next on the list now. The brisk pace of Malta’s licensing process has drawn the attention of other EU regulators.
Officials from other countries working within the framework of the European Securities and Markets Authority (ESMA) have voiced concerns. Some doubt that smaller regulators like Malta can adequately supervise such complex companies. It is said that rapid approvals may leave weak oversight behind.
ESMA is currently assessing the process through which Malta grants licenses. A report will soon be published. The slightest concern is that countries might start a race to seduce companies with softer entry pathways. This would eventually create holes in supervision and enforcement.
Luxembourg Nears Approval for Coinbase
On the other hand, Luxembourg is likely to approve Coinbase. The crypto firm based in the U.S. has been growing across Europe. It has about 200 employees scattered throughout the region. Luxembourg would serve as a new hub for the company’s European operations.
The anticipated license for Coinbase is under close scrutiny by regulators. Some say Luxembourg is setting too high standards for its applicants, while others think the process has become overly politicized. Nations may be competing more to do business than to enforce laws.
This licensing development comes as EU leaders debate what future powers ESMA should have. Some want it to have more centralized oversight to prevent loopholes. Others would like national authorities to have more control.
MiCA aims to standardize regulation of cryptocurrencies, but differences in national approaches have already created disputes. The treatment of these initial licenses by the regulators will largely determine how the remainder of the framework unfolds across the continent.
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