Malta is poised to approve Gemini, and Luxembourg is anticipated to approve Coinbase, according to Reuters.
Crypto exchanges Gemini and Coinbase are allegedly likely to receive licenses to operate in the European Union, marking a key step in their development under the newly established Markets in Crypto-Assets (MiCA) legislation.
Gemini is on track to acquire approval from Malta, while Coinbase is set to obtain its license through Luxembourg, Reuters said Monday, citing anonymous persons familiar with the subject.
A Coinbase representative told Reuters that Luxembourg is a “well-respected global financial center” but declined to comment on the particular application.
Under the MiCA system, Gemini and Coinbase would join other significant exchanges entering the EU. Bybit has received regulatory clearance to operate in the region through Austria, as Cointelegraph previously reported.
In order to conform to the MiCA framework, Binance revised its deposit and withdrawal policies in Poland in January.
The European Securities and Markets Authority (ESMA) released final recommendations for EU member states in June 2024, which led to the full implementation of regulations under the MiCA framework.
MiCA is intended to improve investor protection, foster financial stability, and establish regulatory uniformity within the area.
MiCA ignites stablecoin debate
Not all comments have been favorable, even though several industry watchers have praised MiCA for providing more clarity to the quickly changing crypto asset field. The regulations nevertheless allow for "some room for interpretation and uncertainty," especially with regard to stablecoins, as Chainalysis pointed out.
However, at least ten additional stablecoins, including those from Société Générale, Circle, Crypto.com, Fiat Republic, and others, have been authorized within the framework.
However, early indications point to a lackluster response to stablecoin adoption under MiCA.
According to Fabio Panetta, a former official of the European Central Bank and current Governor of the Bank of Italy, MiCA has not resulted in a considerable adoption of stablecoins in Italy, one of the EU's largest markets.
He pointed out that attention has been moving more and more in the direction of "custodial and trading services."
