Gemini and Coinbase are close to getting licenses to operate in the EU under the MiCA regulations.
- Gemini and Coinbase are expanding into the EU market.
- They are working within the new MiCA rules for crypto oversight.
- Some stablecoin issuers are still unsure about full compliance.
Gemini and Coinbase Expand in Europe
Crypto exchanges Gemini and Coinbase are set to grow their business in Europe. According to a report, Gemini will get a license from Malta. Coinbase is expected to be approved by Luxembourg. This move comes after the new MiCA regulations started in June 2024. These rules aim to make crypto safer and more stable in the EU.
What Is MiCA?
MiCA stands for Markets in Crypto-Assets. It is a new legal framework by the European Union to regulate crypto assets. The goal is to protect investors and make rules the same across all EU member countries. Under MiCA, exchanges must follow strict rules before they can legally operate in the region.
Other Companies Are Also Joining
Gemini and Coinbase are not alone. Bybit recently got approval to operate in the EU from Austria. Binance also updated its systems in Poland to follow MiCA. These changes show that big exchanges are adjusting to keep working in Europe.
Stablecoin Rules Raise Questions
MiCA has clear rules on stablecoins. A stablecoin is a type of crypto that is tied to a real-world currency like the dollar or euro. The EU now wants issuers to keep a large part of their reserves in European banks. Because of this, Tether, the company behind USDt, decided not to register under MiCA.
Still, more than 10 other stablecoins have been approved. These include coins from Circle, Crypto.com, and Société Générale. One expert said adoption is still slow in big markets like Italy. Instead, people there seem more interested in trading and crypto custody services than stablecoins.
Source: cointelegraph.com
