Coinbase has received regulatory approval from Luxembourg to operate cryptocurrency services throughout the European Union and has now chosen the country as its primary base for EU operations.
Although Coinbase had originally established Ireland as its European headquarters in 2023, the company has now shifted its focus. On Friday, the company announced it had been granted a Markets in Crypto Assets (MiCA) license by Luxembourg’s financial authority, the Commission de Surveillance du Secteur Financier (CSSF).
MiCA represents a unified set of rules designed to govern the crypto industry across the EU’s 27 member states. These rules, which came into full effect late last year, aim to protect investors and create consistent standards for digital asset companies. The regulations were introduced in response to the turbulence and scandals that have shaken the crypto market in recent years.
Coinbase joins a growing list of major crypto platforms that have obtained MiCA licenses. Bybit, the second-largest crypto exchange by volume, received its license in May from Austria. Meanwhile, OKX and Crypto.com were approved in Malta. Coinbase, however, stands out as the first US-based exchange to obtain the license. Gemini, founded by Tyler and Cameron Winklevoss, is awaiting approval from regulators in Malta, where it established its EU presence earlier this year.
Brian Armstrong, Coinbase CEO, emphasized the company’s commitment to the European market, stating that the company sees the region as central to the future of crypto. He praised Luxembourg’s supportive regulatory environment and business-friendly policies, calling them a model for other countries.
Although Coinbase initially picked Ireland as its European headquarters in 2023 and made a big splash about the decision at the time, the company has since changed direction. According to Daniel Seifert, Coinbase’s regional head for Europe, the shift wasn’t due to shortcomings in Ireland but rather because Luxembourg offered stronger appeal as a financial center with progressive regulatory policies.
Unlike Ireland, Luxembourg already has several blockchain-related laws on the books, which helped tip the scale in its favor.
Despite relocating its EU base, Coinbase is not pulling out of Ireland. The company plans to expand operations in Dublin, including hiring about 50 new employees. Seifert has moved from the UK to Ireland to oversee Coinbase’s Irish branch.
While Coinbase isn’t the first exchange to gain approval under the EU’s MiCA rules, it’s among the most prominent, joining the likes of Bybit, OKX, and BitGo in navigating Europe’s evolving crypto landscape.
The successes that these major firms are registering in penetrating the EU market could also pave the way for other firms, such as Stronghold Digital Mining Inc. (NASDAQ: SDIG), to make inroads too by attracting more investors from that market.
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