Coinbase recently announced a significant milestone in its expansion efforts by securing a license from Luxembourg to operate cryptocurrency services throughout the European Union (EU). This positions Luxembourg as Coinbase’s central hub in the region, shifting its previous base from Ireland, where it was established in 2023.
First US Exchange Under EU’s MiCA Regulations
The license obtained by Coinbase is part of the Markets in Crypto Assets (MiCA) regulation, which aims to create a unified legal framework for cryptocurrency across all 27 EU member states.
MiCA, which took full effect late last year, aims to strengthen consumer protection and reduce risks in the cryptocurrency market, particularly after several high-profile industry scandals, such as the FTX debacle and the Terra-Luna crash.
With this license, Coinbase becomes the first US cryptocurrency exchange to operate under MiCA regulations in the European Union. Rival firm Gemini, owned by the Winklevoss twins, is also in the process of securing its own EU license, expected to be granted soon as it has chosen Malta as its regulatory base.
Coinbase CEO Brian Armstrong expressed strong commitment to the European market, stating, “Coinbase is all in on Europe, and we’re advocating for crypto’s future across the continent.”
The exchange’s CEO praised Luxembourg for its pro-business environment and thoughtful regulatory approach toward digital assets, establishing the country as a leader in this significant sector of the global financial landscape.
Coinbase Chooses Regulatory Advantages Over Ireland
Initially, Coinbase had selected Ireland as its central EU hub, launching a public relations campaign to support this decision. However, the company later reassessed its strategy and determined that Luxembourg offered a more favorable environment for its operations.
Daniel Seifert, Coinbase’s vice president and regional managing director for EMEA, noted that the choice was not a reflection of Ireland’s policies but rather Luxembourg’s compelling advantages, including established blockchain-related regulations.
While Luxembourg has enacted four blockchain-related laws, Ireland currently lacks any specific legislation governing cryptocurrencies. Despite the shift in focus, Coinbase reportedly remains committed to its Irish operations, with plans to add approximately 50 new jobs to its Dublin office.
Coinbase is not the first company to obtain crypto authorization within the EU, but it stands out as one of the largest players in the market. Other exchanges, including Bybit, OKX, and BitGo, have also received their MiCA licenses, indicating a growing trend of regulatory compliance among major crypto firms.
As of this writing, the exchange’s stock (trading under the ticker symbol COIN on the Nasdaq) had closed the week trending upward at $308 per share, marking a significant 25% increase from the week’s opening price of $245.
Featured image from Shutterstock, chart from TradingView.com
