In June 2025, Gemini and Coinbase moved closer to securing the Europe crypto licenses under Markets in Crypto-Assets (MiCA), as Malta and Luxembourg fast-tracked approvals, sparking regulatory tensions over how quickly crypto oversight is being enforced.
Sources familiar with the matter told Reuters that Gemini, the US-based trading platform founded by Cameron and Tyler Winklevoss, is in the final stages of obtaining approval from Malta.
MiCA, which took effect earlier this year, allows any EU member state to grant EU crypto license that enables crypto firms to function across all 27 nations in the bloc.
The Mediterranean Island, the EU’s smallest member state, has already licensed other major firms such as OKX and Crypto.com – just weeks after MiCA’s rollout.
While Malta’s proactive approach has accelerated market entry for some companies, it has raised alarm bells among other EU crypto regulations. France’s financial watchdog AMF has publicly warned of a potential “regulatory race to the bottom” if the European Securities and Markets Authority (ESMA) fails to maintain oversight consistency.
Speed and Oversight Intensify in Europe Crypto
In closed door meetings, some regulators in cryptocurrency in Europe expressed concern that licenses from smaller EU states with limited regulatory resources may not provide adequate scrutiny.
Speaking anonymously, A senior EU official questioned Malta’s capacity to maintain high standards under pressure to approve applications quickly.
In response, the Malta Financial Services Authority (MFSA) defended its record, stating it had issued four crypto licenses and attributed its efficiency to “an in-depth understanding acquired over these years.”
The authority also highlighted its strong anti-money laundering (AML) policies.
Tensions are rising and ESMA has reportedly launched a review of Malta’s licensing processes, with findings expected to be shared among EU MiCA regulation. The agency declined to comment publicly.
OKX responded to criticism by highlighting the rigor of Malta’s review process, affirming that “compliance remains a top priority.”
Meanwhile, Luxembourg is expected to issue a license to Coinbase, which recently became the first crypto-focused US firm to join the S&P 500. While the license would mark a major milestone, sources say the scope of Coinbase’s initial operations in Luxembourg will be relatively small.
“Luxembourg is a high-bar, well-respected global financial centre,” said a Coinbase spokesperson, who also noted the company employs 200 people across EU markets in crypto-assets regulation and plans to hire 20 more in Luxembourg by year’s end.
As Europe crypto embraces regulation, the friction between rapid innovation and cautious oversight continues to shape the industry’s next chapter.
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