Coinbase Goes Continental, Secures MiCA License for EU Expansion

In recent times, there has been nothing but good news for the crypto industry, and it seems the streak is continuing. Coinbase has long been looking to expand its business, and the news is that it has finally seen success. The American crypto-exchange platform recently acquired a license from Luxembourg that has unlocked access to a big chunk of the world map for it. 

For a while, there have been rumors that Coinbase and Gemini, its rival crypto exchange platform, are working towards getting registered under the Markets in Crypto Assets Framework (MiCA). It was not until Friday, June 20th, that Coinbase officially announced that it had been able to secure the license. 

This License, granted by Luxembourg’s financial authority, the Commission de Surveillance du Secteur Financier (CSSF), has opened up the European Market to Coinbase in a way it never had access to before. The license allows Coinbase to operate and provide its crypto services across all 27 member states of the European Union. But that’s not the only win in this licensing allowance. It would seem that Coinbase has found itself a new base to run its operations in EU countries. In the company’s announcements, it stated that

"Over the past few years, Coinbase has worked closely with regulators across Europe, securing licences in Germany, France, Ireland, Italy, the Netherlands, and Spain."

Ireland has long been Coinbase’s central hub in the EU. However, it seems they have found a new home. 

A Big Move And A Big Moving Away

The company said:

"Now, with MiCA, we're uniting these efforts under a single framework, enabling millions of Europeans to access regulated, trusted, and secure crypto services."

It further stated that “Luxembourg presented a highly compelling option.” While it may seem like a sudden decision, a closer look will show that it may indeed be the best strategic move. As it stands, Luxembourg has four crypto and blockchain-related policies already signed into law. Ireland, on the other hand, has no crypto-specific laws.

But while Coinbase is shifting base to Luxembourg, the company’s vice president, Daniel Seifert, has said that it has not abandoned Ireland. In fact, according to him, the company actually has plans to add 50 more jobs to its Ireland office in Dublin. The MiCA license came into force in June 2023. The license is a highly unique one that grants crypto asset providers and other crypto companies who have it an automatic permit to render their services across all countries in the EU. Individual EU companies can still block operations if there is a legal basis for blocking it; otherwise, it’s open season on all the EU countries.

It goes without saying that securing this license is a major win for Coinbase. But it wouldn’t be the first company to obtain it. Other exchanges, such as Bybit, BitGo, and even OKX, have already gotten MiCA licenses. However, it’s not about who is first; getting it is the most important part. 

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