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Crypto Giants Gemini And Coinbase On Brink Of EU Licenses Amid Regulatory Tensions
- Two major cryptocurrency exchanges, Coinbase and Gemini, are close to acquiring licenses to operate in the EU amidst regulatory differences among member states.
- Gemini is set to receive a license from Malta, following swift approvals for other crypto firms in the country, while Coinbase is nearing approval in Luxembourg.
- Coinbase's operations in Luxembourg are expected to be modest, with around 200 European employees, focusing on operational safety.
- The Central Bank of Ireland has expressed skepticism about cryptocurrencies, contrasting with Coinbase's potential licensing in Luxembourg.
- EU regulators are concerned about the speed and rigor of approvals under the new Markets in Crypto-Assets (MiCA) regulation, fearing potential fraud and market instability.
- Lax enforcement of regulations could lead to issues in aligning crypto operations with traditional financial oversight.
- Concerns have been raised by regulators, like France's AMF, regarding the lack of direct oversight from ESMA and the risk of a regulatory race to the bottom.
- Malta's rapid licensing process under MiCA has triggered concerns among EU regulators about the adequacy of staff and the potential impact on regulatory robustness.
- The Malta Financial Services Authority defends its approvals based on experience and adherence to anti-money laundering standards, having granted four crypto licenses under MiCA so far.
- The differing regulatory approaches within the EU create competition among member states for crypto firms, leading to potential inconsistencies in the regulatory environment.
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