Gemini and Coinbase advance towards the approval of the EU Mica license

The main exchange platforms of cryptocurrencies Coinbase and Gemini are close to obtaining licenses to operate legally in the European Union (EU) under the Regulations on the Crypto-Active Markets (MICA). With these licenses, they would join other global scholarships such as Bybit, which obtained approval from the Austrian Markets Authority in May.

Coinbase and Gemini close to EU approval under mica

According to reports, Gemini is close to obtaining his license via Malta, which has already approved other large platforms like OKX and Crypto.com. Meanwhile, Coinbase focuses on Luxembourg, where his license request has been under examination for some time.

A spokesperson for Coinbase said that the company, which is now a member of the S&P 500, has around 500 employees in Europe. She also plans to increase her team in Luxembourg by recruiting 20 additional employees this year.

Mica entered into force in June 2024 and was fully implemented in December after ESMA published its final directives. This regulation aims to create coherent rules for cryptocurrency companies through the EU, protecting investors and supporting financial stability.

Binance, in January, adjusted the way users in Poland make deposits and withdrawals so that its services complies with the new European law.

Concerns about the speed of licenses in Malta and the application of Mica

Some European regulators have expressed concerns about the speed and consistency of crypto license approvals under Mica. They fear that the precipitation of approvals, especially in countries like Malta, can compromise the objectives of the regulation.

The main concerns are:

• The pace of the approvals of mica licenses in countries like Malta and Luxembourg.
• The regulators fear that an incoherent application will decrease the overall impact of Mica.
• France has expressed its concern that limited regulatory powers can lower standards at the EU level.
• A Luxembourg manager denies the existence of weak rules, assigning criticism to competition between EU member states.

Stablecoins' rules arouse concerns at a time when the EU faces a unit test

The concerns around Mica focus in particular on its rules concerning stablecoins. The regulations require that transmitters have a “significant” part of their reserves in banks based in the EU.

However, the term “significant” is not clearly defined, which gives way to uncertainty. This lack of clarity has made certain companies cautious about their commitment to the frame of Mica.

TETHER, which emits the USDT popular stable, has chosen not to participate in Mica because it does not wish to hold reservations in European banks. Nevertheless, more than a dozen other stables – such as those of Circle, Crypto.com and Société Générale – have received approval within the framework of the new rules.

Although Mica has provided clearer directives in many parts of the European crypto universe, the adoption of stablecoins under these regulations remains relatively slow. The rules are in place, but activity on this market has not yet taken its momentum.

On a larger scale, cracks are beginning to appear between EU member states. There is a Current debate On the question of whether ESMA should have more powers to guarantee a uniform application of mica everywhere.

Although the EU has common rules and a shared market, countries compete to attract global crypto companies. This rivalry arouses fears about its influence on the application of the rules and on the effectiveness of Mica on a block scale.