TLDR
- Gemini is close to receiving an EU license to operate in Malta under the MiCA regulation.
- The move follows Malta’s recent fast-track approvals for OKX and Crypto.com.
- EU regulators have raised concerns about the speed and consistency of license approvals.
- ESMA is preparing a report that criticizes Malta’s approach to granting crypto licenses.
- France’s AMF has argued that the lack of central oversight could weaken regulatory standards.
According to internal sources, the crypto exchange Gemini is nearing approval for a European Union license to operate in Malta. This development follows the recent rapid licensing of OKX and Crypto.com by Malta’s financial regulator under the new MiCA framework. As a result, regulatory tensions have increased across the European bloc over the pace of such approvals.
Gemini Moves Toward Malta Entry Amid Regulatory Scrutiny
Gemini, founded in 2014 by the Winklevoss twins, aims to secure its EU-wide operational access through Malta. The company is targeting a swift entry by capitalizing on Malta’s established infrastructure for crypto oversight. This approach, however, has attracted skepticism from national regulators across the continent.
The move by Gemini comes as Malta finalizes licenses for several crypto firms just months after MiCA came into effect. Regulatory officials across Europe have expressed concern that Malta’s expedited process may undermine broader EU supervisory objectives. ESMA is reportedly preparing a review criticizing Malta’s current handling of crypto license approvals.
Despite this, the Malta Financial Services Authority defended its methods, citing its long-standing experience with virtual financial assets. The authority claimed it has developed deep regulatory capabilities, which enable quicker assessments without compromising compliance. Gemini, therefore, could benefit from this strategy, even as others question its reliability.
Coinbase Nears Luxembourg Approval, Ireland Loses Ground
Meanwhile, Coinbase is approaching regulatory approval in Luxembourg, where it plans to anchor its EU operations under the MiCA passporting model. The crypto exchange has employed 200 people across Europe and invested in internal controls to meet regulatory standards. Coinbase previously operated from Ireland but appears to be shifting focus due to local policy concerns.
Coinbase’s movement into Luxembourg dealt a blow to Ireland, especially after harsh comments from Central Bank Governor Gabriel Makhlouf. Makhlouf compared crypto investments to lottery tickets and raised doubts about the industry’s legitimacy. This stance has weakened Ireland’s appeal to major crypto firms like Gemini and Coinbase.
Luxembourg’s financial regulator, however, rejected claims of lax licensing processes, emphasizing rigorous due diligence and supervision. Gemini is closely observing developments in Luxembourg as a benchmark for how MiCA licensing is being applied across jurisdictions. Each country’s licensing track record is now influencing firm-level strategy in this new phase of regulatory competition.
Europe Divided Over MiCA Enforcement Standards
The European Securities and Markets Authority is concerned about the uneven application of MiCA rules among member states. Gemini’s potential approval in Malta has sparked internal debate about ESMA’s limited powers and national discretion. France’s AMF has called for a stronger central authority to avoid regulatory inconsistencies.
Like other exchanges, Gemini’s strategy hinges on exploiting the EU’s single-license model for regional expansion. Yet with Malta and Luxembourg accelerating decisions, other regulators warn of a competitive race without unified oversight. The ESMA leadership continues reviewing whether additional powers are necessary to ensure regulatory consistency across the bloc.
