Coinbase, one of the leading cryptocurrency exchanges in the United States, has obtained a license under the European Union’s Markets in Crypto-Assets Regulation (MiCA) after registering with the Luxembourg Financial Sector Supervisory Commission (CSSF). This makes Coinbase the first American exchange to receive such a permit in Europe.
This is reported by Finway
Coinbase Chooses Luxembourg as Regional Hub
The company announced its intention to make Luxembourg its regional hub in the EU. Previously, the exchange considered Ireland as a potential site for expansion, but the focus has now shifted to Luxembourg due to its favorable cryptocurrency legislation.
“By choosing Luxembourg, we are positioning ourselves in a jurisdiction that understands the needs of the crypto industry and stands out for its regulatory clarity. Luxembourg is actively implementing a nationwide approach to blockchain and DLT,” the release states.
According to Daniel Seifert, Vice President and Regional Managing Director of Coinbase for the EMEA region, the leadership chose Luxembourg due to the presence of four already enacted cryptocurrency laws, while Ireland currently has no similar legislation.
MiCA: A New Phase for the EU Cryptocurrency Market
The MiCA regulation is a comprehensive regulatory framework for governing crypto-assets in the European Union. It was approved by the EU Council in June 2023. The implementation of the new rules occurs in two phases, which are planned to be completed by the end of 2024; however, several countries have yet to adapt the regulation into their national legislation.
It is worth noting that Coinbase is not the only cryptocurrency exchange seeking to comply with MiCA requirements. In particular, the exchange Bybit has already registered in Austria, and another American platform, Gemini, is currently undergoing registration in Malta and may soon obtain a MiCA license.