A regulatory framework for crypto! This could be one of the key pressing demands of every crypto investor and enthusiast because solid regulation makes any sector grow and expand. And, here it is; the European Union’s (EU) Markets in Crypto-Assets (MiCA), a landmark regulatory framework for the crypto sector in the countries that are under the EU.
Joining the array of crypto firms securing the MiCA license, crypto exchanges Gemini and Coinbase have recently made headlines as they move closer to receiving the license.
What does Coinbase and Gemini nearing MiCA approval signal?
According to news reports, Coinbase is set to obtain the MiCA license from Malta, whereas Gemini will receive the license from Luxembourg to easily operate in the European Union.
Once both exchanges officially receive the crypto licenses, they can seamlessly operate across all 27 countries in the EU. This would further enhance their market presence and make them more credible.
For the EU, the crypto market would likely shine with the new MiCA framework. There could be increased institutional confidence as more crypto companies will find the framework robust, trustworthy, and certain. As major crypto firms enter the EU crypto market, a competitive landscape may arise, attracting more firms to join and comply with the new regulation.
What is MiCA?
The Markets in Crypto-Assets or MiCA is an iconic, comprehensive regulatory framework introduced by the European Commission of the EU. With MiCA, the EU intends to harmonize the legal regulatory framework for crypto assets and crypto service providers. The framework applies to all 27 countries in the EU.
The EU formally adopted MiCA in May 2023, and it was published in the Official Journal of the European Union in June 2023. The regulations under the framework became effective in June 2024.
The MiCA EU regulates the crypto markets and categorizes them into asset-reference tokens (ARTs), e-money tokens (EMTs), and all other crypto assets not managed under the previous regulations.
Crypto companies that have obtained MiCA licenses in the EU
Last month, ByBit secured the MiCA license from Austria’s Financial Market Authority and launched its EU headquarters in Vienna. OKX and Crypto.com, two of the leading crypto exchanges, also received the MiCA license from Malta, while Bitpanda obtained the license from Germany’s Federal Financial Supervisory Authority.
Besides, crypto exchange MoonPay, digital asset prime broker Hidden Road have gained their MiCA licenses from the Dutch Authority for the Financial Markets (AFM). Meanwhile, MiCA approved Socios.com, a blockchain-based fan engagement and rewards platform, allowing it to receive a license from the Malta Financial Services Authority (MFSA).
