Concerns arise as Coinbase, Gemini set for EU licenses

Getting your Trinity Audio player ready...
Coinbase (NASDAQ: COIN) and Gemini, two of the largest digital asset exchanges in the world, look set to be granted licenses to operate as Crypto Asset Service providers (CASPs) in the European Union, under the bloc's Markets in Crypto-Assets (MiCA) regulation, according to a report by Reuters.
The June 16 report stated that Gemini, founded by Tyler and Cameron Winklevoss, is on the verge of receiving a license to operate from Malta, while Coinbase, the third-largest digital asset exchange by trading volume, is rumored to be in line for a license from Luxembourg.
Despite the MiCA rules being uniform for every country across the EU, with the European Securities and Markets Authority (ESMA) setting guidelines and best practices for member state regulators to follow, the actual enforcement of the regulations is left to the 'relevant national competent authority' (NCA) of each nation.
According to the Reuters report—which cited 'sources familiar with the matter' who wanted to remain anonymous—concerns have been raised in 'closed-door meetings' about the speed with which some licenses are being granted by certain regulators and the rigor with which they will enforce the MiCA rules.
MiCA license
The full MiCA provisions for CASPs came into force at the beginning of January. This included a mandate that CASPs must obtain a license from an NCA (i.e. a national regulator), in order to offer digital asset services within the EU and European Economic Area (EEA).
Thanks to the 'passporting' feature of the regulation, a license issued by any member state's regulator allows the licensee (the CASP) to operate throughout the EEA, which includes every country in the 27-nation bloc, in addition to Iceland, Liechtenstein, and Norway.
On January 27—a few short weeks after MiCA's CASPs provisions came into force—OKX and Crypto.com both announced themselves as being the first global exchange to secure a MiCA license. It's unclear which one actually was first, as they both claimed the title on the same day . Both exchanges also chose Malta to be their route to a license, but neither mentioned in their respective announcements why they chose Malta. In May, exchanges Bybit and Bitstamp, also obtained licenses; the former from Austria, and the latter became the first exchange to be granted a license by Luxembourg's financial regulator, the Commission de Surveillance du Secteur Financier (CSSF).
Now, it appears Gemini and Coinbase are poised to join the club, with Malta and Luxembourg once again the countries of choice.
Concerns of uneven enforcement
The pace of these approvals, particularly those of Malta's regulator, the Malta Financial Services Authority (MFSA), has apparently raised eyebrows amongst other national authorities.
According to the report, a 'senior regulatory official'—who also didn't want to be identified—told Reuters they had concerns about accepting licenses granted in countries where regulators had fewer staff, citing Malta—the country that has given out the most MiCA licenses thus far—as one example.
If staff size and regulatory resources are of concern, then it makes sense that Malta and Luxembourg, the two smallest nations in the EU by both population size and land area, may be on the thinner end of the spectrum.
These reported concerns also come at a time when the EU's top finance sector regulator, ESMA, is pushing for more power to become a Europe-wide version of the U.S. Securities and Exchange Commission (SEC).
In September of last year, Mario Draghi, former European Central Bank (ECB) president, produced a report for the European Commission with his recommendations for the future of European competitiveness. In it, he proposed, as one of his key pillars, the creation of a U.S.-style 'European Security Exchange Commission,' with ESMA the logical body best suited to take on the role.
'ESMA should transition from a body that coordinates national regulators into the single common regulator for all EU security markets,' said Draghi.
This idea has met with some support from leading national regulators within the bloc. In March, Marie-Anne Barbat-Layani, chair of the top French finance watchdog, told Bloomberg that it was 'ready to relinquish' some of its national powers and transfer them to ESMA.
ESMA is yet to comment on the speed and rigor of the Malta and Luxembourg approvals, including the potential licenses for Gemini and Coinbase, but it has made clear that it will be monitoring how national regulators enforce the MiCA framework as part of its mandate to promote consistent supervision and enforcement practices for EU markets.
Watch: Teranode is the digital backbone of Bitcoin
title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen="">

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

The Guardian

2 hours ago

• The Guardian

Pornhub and other adult sites back online in France after three-week protest

Major adult websites Pornhub, YouPorn and RedTube were back online in France Friday after a court suspended a decision requiring pornographic platforms based in the European Union to verify users' ages. The three platforms' owner, Aylo, based in Cyprus, had made its websites unavailable in France in early June as a protest against the French decree. Failure to comply could have lead to sanctions including fines or the blocking of the websites. France has gradually introduced requirements this year for all adult websites to have users confirm their age with details such as a credit card or ID document. The aim is to prevent minors from accessing pornography. But the Paris administrative tribunal on Monday suspended a government decree while investigating whether it was compatible with EU legislation. The French government has shared its intention to appeal to the Council of State, the country's highest administrative court. Aylo said the decree's suspension was an 'opportunity to reconsider more efficient approaches' to age verification. The company argued that this was an ineffective mechanism that exposed people's data to bad actors, hacks or leaks. 'Requiring you to repeatedly provide sensitive personal information creates an unacceptable security risk that we refuse to impose on our users,' the company said in a message displayed on the sites' homepages earlier this month. About 40% of children in France access porn sites every month, according to a 2024 study by France's Arcom audiovisual watchdog. In a bid to preserve privacy, the government decree also required operators to offer a third-party 'double-blind' option that would prevent the platforms from seeing users' identifying information. Aylo, which reports seven million visitors in France daily across its various platforms, has called instead for governments to require makers of operating systems such as Apple, Microsoft and Google to verify users' ages at the level of individual devices. Sign up to TechScape A weekly dive in to how technology is shaping our lives after newsletter promotion The platform also argues that the French law 'diverts users to thousands of sites that deliberately circumvent regulations' and fails to moderate videos for issues such as the age and consent of performers. Other countries such as the United Kingdom and Germany also enforce age-related access restrictions to adult websites.

Auto Blog

3 hours ago

• Auto Blog

Hopes Of Lower Tariffs Against European Cars Are Fading Fast

Hopes Of A Deal Are Fading Fast One of the biggest promises of President Donald J. Trump's electoral race was to impose tariffs on foreign imports, and shortly after he was inaugurated for the second time, 'tariffs' quickly became one of the buzzwords of his presidency. When it comes to cars, just about anything produced outside of American borders is going to get a lot more expensive, and due to vastly complex international supply chains, even domestically produced products could be impacted. But there was a glimmer of hope that the president would change – or at least soften – his stance against America's allies in Europe. European Union leaders had publicly expressed this expectation, citing a history of cooperation. However, as the July 9 deadline for tariffs to be further increased approaches, hope is fading, reports Reuters. The U.S. Is Already Reaping Tariff Income The publication spoke to an anonymous official who reportedly noted that hopes of relief are fading faster now that tariffs have come into effect: '10% is a sticky issue. We are pressing them, but now they are getting revenues.' A second source reportedly said the EU still would not accept the baseline rate but acknowledged that it would be difficult to change or abolish the measure. The European Union has also publicly declared that it would not accept double-digit tariffs as the United Kingdom has, but U.S. Commerce Secretary Howard Lutnick has ruled out the idea of any tariffs being lowered under the 10 percent baseline. What makes this worse is that the tariffs don't only apply to finished products; steel and aluminum from Europe face a 50 percent tariff, and that doesn't even include the standalone 25 percent tariff on foreign cars. The good news is that Europe, with a trade surplus of $236 billion with the U.S., needs to continue doing business with the largest economy in the world, so your local BMW dealer isn't closing up shop anytime soon. An EU official is quoted by Reuters as saying that the 10% baseline rate would 'not massively erode competitive positions, especially if others receive the same treatment.' And although hope of a compromise is fading, it hasn't been extinguished just yet. Officially, The Fat Lady Has Yet To Sing As noted by CarScoops, European Commission President Ursula von der Leyen has confirmed that negotiations are still underway, despite President Trump's assertion earlier this week that the EU hadn't been fair thus far. 'We're talking, but I don't feel that they're offering a fair deal yet,' said President Trump. 'They're either going to make a good deal or they'll just pay whatever we say they have to pay.' Von der Leyen said, 'It's complex, but we are advancing – that is good – and I push hard to pick up more speed. So we are mixed in the negotiations, and we will see what the end brings.' The United States government is adamant that its long-standing partners are benefitting more from the status quo than America is, and that mindset means that any price increases as a result of tariffs on EU imports will likely not be small. That said, automakers are working to find ways of absorbing as much of the financial strain as possible, and one way of doing that is by pushing sales of existing inventory with incentives and employee pricing offers. Autoblog Newsletter Autoblog brings you car news; expert reviews and exciting pictures and video. Research and compare vehicles, too. Sign up or sign in with Google Facebook Microsoft Apple By signing up I agree to the Terms of Use and acknowledge that I have read the Privacy Policy . You may unsubscribe from email communication at anytime. About the Author Sebastian Cenizo View Profile

Reuters

5 hours ago

• Reuters

French heart prosthesis firm Carmat at risk of insolvency by end-June

June 20 (Reuters) - French heart prosthesis company Carmat ( opens new tab is in a critical financial situation and will be at risk of insolvency by the end of this month, it said in a statement on Friday. Carmat needs 3.5 million euros ($4.04 million) to avoid insolvency by the end of June, it said. It said it is actively exploring financing options and is launching a campaign seeking donations through an online platform. ($1 = 0.8673 euros)