Gemini’s application is reportedly progressing through Malta, while Coinbase is pursuing authorisation in Luxembourg. Although Coinbase did not confirm specifics regarding its licencing efforts, company representatives described Luxembourg as a globally recognised financial jurisdiction.
MiCA, which came into force in June 2024, aims to harmonise crypto regulation across EU member states. The framework is designed to provide clarity for companies operating in the sector and to support investor protection and market stability.
Full enforcement is scheduled for December 2024 following final implementation guidelines from the European Securities and Markets Authority (ESMA).
As part of MiCA’s early adoption phase, several firms have already secured approval. Bybit was recently authorised to operate in the EU through Austria, and Binance has adjusted its services in Poland to align with MiCA requirements.
The regulation has also had a notable impact on stablecoins. While some see the rules as a step toward clearer oversight, others point to areas that remain ambiguous. Chainalysis has observed that the regulatory text leaves certain elements open to interpretation, particularly in relation to stablecoin issuance.
A key provision under MiCA mandates that issuers of stablecoins maintain a substantial portion of their reserves with European financial institutions. This condition has prompted some issuers, such as Tether, to opt out of seeking registration within the EU.
Despite these challenges, over ten stablecoins have already received approval under the framework. These include offerings from Circle, Crypto.com, Fiat Republic, and Société Générale. Adoption, however, appears to be limited in some markets. In Italy, officials at the Bank of Italy have indicated that the regulation has not yet driven significant uptake of stablecoins. Instead, market demand seems to be favouring custodial services and crypto trading infrastructure.
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