Two of the greatest exchanges of cryptocurrency in the world, Coinbase and Gemini, are about to obtain licenses which would allow them to operate in the European Union, as regulatory differences emerge among the Member States.
Gemini and regulatory licenses Targets of Coinbase
According to For Reuters, Gemini, the crypto trading platform founded by Tyler and Cameron Winklevoss, should receive a Malta license, the smallest member country of the EU. This follows the quick approvals of Malta from other cryptography companies like OKX and Crypto.com earlier this year.
In parallel, Coinbase would have approached a license in Luxembourg, which would make it the first American crypto company to be authorized under the new EU regulations.
Although the request has been underway for several months, the initiates suggest that the planned Coinbase operations in Luxembourg will be “relatively modest”.
A company spokesperson told Reuters that he employs around 200 people in Europe and undertakes to invest in staff to ensure operational security.
The expected approval of the corner is in the middle of the cooling relationships between the cryptography industry and Ireland. The central bank of Ireland recently expressed skepticism about cryptocurrencies, its governor comparing them to a Ponzi program.
However, the license process has aroused criticism from various national regulators who are concerned about “speed and rigor of approvals”.
EU regulators express concerns about rapid licenses
According to the new markets in the regulation of cryptocurrencies (mica), which aims to align cryptographic operations with traditional financial monitoringCountries can issue licenses that allow cryptographic companies to operate throughout the block of 27 members.
Some regulators fear that the application of the law will be able to undermine the objectives of the regulatory framework, potentially leading to problems such as fraud and instability of the market.
The rapid license to Malta has also raised eyebrows among other EU regulators, in particular those which meet under the European Securities and Markets Authority (ESMA).
French financiers of the Authority of Tops (AMF) publicly published that a lack of direct supervision of ESMA could lead to a “regulatory race down”.
Concerns have also been expressed as to the adequacy regulatory In countries like Malta, which can affect the robustness of their license processes.
In response, the Malta Financial Services Authority said that its accelerated approvals are based on years of experience and strict membership of local money laundering standards. So far, Malta has granted four cryptographic licenses since the introduction of the new Mica regime.
The debates in progress within the EU highlight the complex dynamics between the Member States when they compete for international affairs. According to the report, while the EU operates as a unified commercial block, individual countries compete for the attention of cryptographic companies, often leading to regulatory inconsistencies.
Shutterstock star image, tradingView.com graphic
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