- Coinbase is first U.S. crypto exchange to receive EU MiCA license from Luxembourg.
- Luxembourg chosen over Ireland due to clearer blockchain regulations and legal framework.
- Coinbase plans unlimited dollar credit lines backed by pooled crypto collateral globally.
Coinbase has officially received a Markets in Crypto Assets (MiCA) license from Luxembourg’s financial regulator, the Commission de Surveillance du Secteur Financier (CSSF). This marks the first U.S.-based crypto exchange to obtain this authorization in the European Union. This regulatory approval allows Coinbase to provide crypto services across the EU under the new MiCA framework, designed to regulate digital assets within member states.
Following the license acquisition, Coinbase has set up Luxembourg as its central hub for European operations. This marks a shift from its previous plan to base its EU activities in Ireland. Coinbase representatives cited Luxembourg’s established blockchain-related legislation and regulatory clarity as key factors in this decision. Luxembourg currently has four blockchain-specific policies formally enacted, whereas Ireland lacks crypto-specific laws, making it less favorable for compliance and operational certainty.
Daniel Seifert, Coinbase’s vice president and regional managing director for EMEA, noted that Luxembourg’s regulatory environment provided a “highly compelling option” for the company’s European strategy. The country’s legal framework aligns with the requirements and protections set by MiCA, which aims to create a harmonized and secure market for crypto assets throughout the EU.
Context of MiCA and Industry Approvals
MiCA, introduced to create a standardized regulatory approach for crypto activities in Europe, sets out licensing and operational rules for digital asset service providers. Coinbase’s license follows several other crypto firms that have also obtained MiCA authorization, including Bybit, OKX, and BitGo. Among these, Coinbase stands as one of the largest exchanges by user base operating in the region.
Gemini, another U.S.-based crypto exchange, is reportedly awaiting its own MiCA approval from Malta, indicating a growing trend of international exchanges seeking formal regulatory clearance to serve European customers.
New Credit Offering Announced
Alongside the licensing news, Coinbase announced plans to offer unlimited dollar lines of credit backed by pooled collateral across its platforms globally. This financial product, pending regulatory approvals, aims to leverage Coinbase’s crypto assets as collateral to provide users with flexible credit options.
This development aligns with Coinbase’s broader strategy to expand its range of financial services under the regulatory frameworks now available within Europe. The MiCA license forms a legal foundation for these offerings, ensuring compliance with EU regulations.
