Market News

EU Steps Up with Coinbase's MiCA License, Elevating Crypto Services for All

Coinbase has achieved a significant milestone by securing regulatory approval to operate across the European Union under the Markets in Crypto Assets (MiCA) framework.

This license, granted by Luxembourg's financial authorities, allows Coinbase to extend its crypto services to all 27 EU member states.

The announcement confirms previous speculation about Coinbase's plans to register under MiCA, alongside competitor Gemini.

Luxembourg was chosen for its proactive approach to blockchain, bolstered by four key blockchain-related laws introduced in recent years.

Over recent years, Coinbase has cultivated relationships with regulators across Europe, obtaining licenses in several countries, including Germany, France, and Spain.

With the MiCA framework now in place, Coinbase streamlines its operations, allowing millions of Europeans access to secure and regulated crypto services.

MiCA, which took effect in June 2023, creates a uniform licensing regime for crypto service providers within the EU, enabling them to "passport" their services across the region.

However, concerns persist about the potential for a "race to the bottom" in regulatory standards, with some jurisdictions criticized for lax enforcement.

Industry experts caution that this scenario may dilute consumer protection and undermine trust across borders in the digital finance landscape.

The European Securities and Markets Authority is currently reviewing licensing processes in jurisdictions like Malta, underscoring the ongoing evaluation of regulatory effectiveness in the crypto space.