Crypto Giants Poised for EU Regulatory Approval Amid Growing Tensions Among Regulators
Published: June 13, 2025
In a significant development for the cryptocurrency sector, two major firms—Gemini and Coinbase—are reportedly on the verge of receiving licenses to operate within the European Union (EU). This anticipated regulatory green light comes as a backdrop of increasing discord among various EU regulators, who are expressing concerns about the rapidity and strictness of license approvals in some member states.
The New EU Regulatory Framework
The backdrop for these upcoming approvals is the EU’s Markets in Crypto-Assets (MiCA) regulation, which took effect earlier this year. Under MiCA, individual member states are empowered to issue licenses that enable cryptocurrency firms to operate throughout the 27-member bloc. However, this decentralized approach has led to apprehensions regarding differing regulatory standards, with some countries accelerating the approval process at a pace that has drawn scrutiny.
Sources familiar with ongoing discussions indicated that behind closed doors, regulatory officials have raised alarms over the speed at which licenses are being granted. This is crucial as unregulated or poorly regulated crypto activity could facilitate fraud and market instability, issues regulators have historically warned about.
Gemini and Coinbase at the Forefront
Gemini, a trading platform co-founded by billionaires Tyler and Cameron Winklevoss, is reportedly set to receive a license from Malta—the smallest nation in the EU. This follows Malta’s earlier approvals for companies like OKX and Crypto.com, granted shortly after the MiCA framework was introduced. However, this swift licensing process has not gone unnoticed. Regulators from other nations, meeting under the European Securities and Markets Authority (ESMA), have openly expressed their concerns about a potential "regulatory race to the bottom."
A senior regulatory official underscored that they are cautious about accepting licenses from jurisdictions such as Malta, which may have fewer regulatory resources. A spokesperson from the Malta Financial Services Authority defended the country’s rapid licensing approach, citing its extensive experience in the financial sector and stringent local money laundering standards.
Meanwhile, Coinbase, which made headlines as the first U.S.-based crypto company to be listed on the S&P 500, is also on track to receive approval from Luxembourg’s financial regulator. Though the application is said to have been in progress for several months, some critics have pointed out that Coinbase’s planned operations in Luxembourg are relatively modest. A spokesperson for the company commented on its commitment to employing local staff and ensuring the safety of its operations in the region.
Regulatory Tensions and Future Prospects
The anticipated approvals for Gemini and Coinbase highlight not only the disparities in regulatory approaches among EU nations but also the broader implications for the European crypto industry. Ireland, which traditionally enjoyed a more favorable relationship with cryptocurrency firms, may face challenges as its regulatory environment becomes less welcoming, especially after public critiques from its Central Bank Governor.
As the crypto sector continues to evolve, discussions are intensifying within EU political circles regarding the potential for increasing ESMA’s oversight capabilities in the crypto domain. While some nations remain skeptical about granting greater authority to ESMA, there is a growing awareness that a cohesive regulatory framework could mitigate risks associated with financial instability and fraud within the multi-trillion-dollar cryptocurrency market.
This moment of regulatory flux arrives amidst a backdrop of heightened scrutiny of the crypto industry following high-profile crises, such as the explosive collapse and fraud of the FTX exchange in 2022. As a result, clarity and consistency in regulations will be paramount as Europe navigates the burgeoning and often turbulent world of digital assets.
With various stakeholders closely monitoring the situation, the next steps taken by both regulators and companies in the coming weeks and months will be pivotal in shaping the future landscape of cryptocurrency in Europe.
Conclusion
As Gemini and Coinbase await their respective licenses, the unfolding situation underscores the complexities of regulating a rapidly advancing crypto market. The EU’s ability to harmonize its regulatory approach will be critical in ensuring a balanced environment that fosters innovation while safeguarding against potential pitfalls in the cryptocurrency space.
Reporting by Elizabeth Howcroft in Paris and John O’Donnell in Frankfurt; editing by Elisa Martinuzzi and Louise Heavens.
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