Coinbase obtains a license in Luxembourg to offer its crypto services in Europe, making the country its central hub in the region The American platform announced on Friday that it had obtained its “Markets in Crypto Assets” (MiCA) license from the Luxembourg Financial Sector Supervisory Commission (CSSF).
The MiCA regulation is a harmonized legal framework aimed at establishing uniform rules for cryptocurrencies across the 27 European Union member states. This regulation, which came into force late last year, also aims to reduce risks for consumers following several scandals in the sector.
This makes Coinbase the first US crypto exchange to receive a MiCA license. Rival company Gemini, owned by the Winklevoss twins, is also expected to obtain its own license in the EU, likely in Malta, which was chosen as the company’s MiCA hub in January.
“Coinbase is fully committed to Europe, and we are advocating for the future of crypto across the continent,” Coinbase CEO Brian Armstrong told CNBC. “MiCA has set the standard, and Luxembourg is leading the way with its business-friendly climate and thoughtful approach to regulation.”
Coinbase initially chose Ireland as its central hub in the EU in 2023 and launched a major public relations campaign around it. However, the company ultimately changed its mind, believing that Luxembourg offered a more suitable environment as a “forward-thinking financial hub.”
“The decision was not primarily driven by Ireland, but rather by the attractiveness that Luxembourg presented,” Daniel Seifert, Coinbase’s vice president and regional director for EMEA, told CNBC. Luxembourg has adopted four blockchain-related laws, compared to no crypto-specific legislation in Ireland at this time.
He also said Coinbase continues to invest heavily in Ireland, with “imminent” plans to add approximately 50 jobs at its Dublin offices. Seifert himself moved to Ireland from Germany to take up the role of CEO of Coinbase’s Irish entity.
Globally, Coinbase isn’t the first company to obtain a crypto license in the EU, but it remains one of the largest. Other platforms like Bybit, OKX, and BitGo have already obtained their respective MiCA licenses.