Coinbase gets EU crypto license in Luxembourg

Coinbase has chosen Luxembourg as its new regulatory base in the European Union, after securing a Markets in Crypto Assets (MiCA) licence from the country’s financial regulator.

The US-based cryptocurrency exchange received approval from the Commission de Surveillance du Secteur Financier (CSSF), enabling it to operate across all 27 EU member states.

This move shifts the company’s strategic European centre from Ireland, which was designated as Coinbase’s regional hub in 2023.

The licence marks Coinbase as the first major US crypto platform to meet MiCA compliance requirements in the bloc.

Luxembourg gets nod over Ireland as Coinbase shifts strategy

The decision to move from Ireland to Luxembourg follows a strategic reassessment by Coinbase’s leadership.

In 2023, the exchange launched a high-profile campaign highlighting its Irish expansion, naming the country as its EU headquarters.

However, according to Coinbase’s vice president and regional managing director for EMEA, Daniel Seifert, Luxembourg emerged as the more viable long-term choice.

He cited the Grand Duchy’s established regulatory framework and status as a forward-thinking financial hub as the deciding factors.

Unlike Ireland, Luxembourg has four crypto-related laws already on the books. Ireland, by contrast, still lacks dedicated legislation specific to digital assets.

Despite the shift, Coinbase maintains that it remains committed to Ireland, with Seifert revealing plans to add around 50 jobs to its Dublin office. He also confirmed that he has relocated to Ireland from Germany to lead Coinbase’s Irish operations.

MiCA licence opens access to all 27 EU nations

The licence granted by the CSSF falls under the MiCA regulation, a bloc-wide legal framework that came into full effect late last year. MiCA is designed to harmonise crypto asset regulations across the EU and increase investor protections.

The legislation was introduced in response to high-profile industry failures and is intended to minimise consumer risk when engaging with digital assets.

With the MiCA licence, Coinbase can now passport its services to all EU countries without needing separate authorisations from each jurisdiction. The firm stated that this will allow it to scale its offerings more efficiently across the continent.

MiCA also requires that companies meet stringent operational, governance, and transparency standards, including disclosures to clients and stablecoin issuance rules.

Competition heats up as Gemini eyes Malta licence

Coinbase’s successful application puts it ahead of rival American exchange Gemini, which is still awaiting its own EU authorisation.

Gemini, owned by the Winklevoss twins, chose Malta as its MiCA hub earlier this year and is expected to receive regulatory approval soon.

Other major exchanges, including Bybit, BitGo, and OKX, have already received licences under MiCA rules, showing increasing compliance across the industry.

Although Coinbase is not the first platform to secure approval under MiCA, it is currently the largest US exchange to do so.

The development reinforces Coinbase CEO Brian Armstrong’s statement that the company is “all in on Europe” as it expands its regulatory footprint across the region.

Armstrong also described Luxembourg’s regulatory environment as “pro-business” and aligned with crypto innovation.

Regulatory clarity in Europe contrasts with US uncertainty

The move comes at a time when regulatory uncertainty continues to pose challenges for cryptocurrency businesses operating in the United States. In contrast, Europe’s rollout of MiCA provides a clear pathway for compliance and market access.

Coinbase has previously voiced frustration with US regulators, including the Securities and Exchange Commission (SEC), over the lack of comprehensive digital asset regulation.

By securing the MiCA licence, Coinbase positions itself to benefit from Europe’s more structured approach to crypto oversight.

The company’s commitment to expanding both in Luxembourg and Ireland signals its intent to remain a long-term player in the EU’s growing digital asset market.

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