Coinbase gains EU-wide access under MiCA license, but critics question regulatory arbitrage in smaller states.
Coinbase expands crypto operations across the EU
Coinbase has officially secured a Markets in Crypto-Assets (MiCA) license through Luxembourg, granting the exchange legal approval to operate across all 27 European Union countries. The move positions Coinbase as a leading player in the European crypto market under MiCA’s unified regulatory framework.
Luxembourg chosen for strategic regulatory advantage
The license, granted by Luxembourg’s financial regulator, enables Coinbase to “passport” its crypto services across EU member states without needing individual licenses in each country. Coinbase cited Luxembourg’s “whole-of-government” approach and progressive blockchain legislation—four relevant laws passed in recent years—as key reasons for choosing the country as its regulatory base.
Regulatory clarity boosts Coinbase’s European strategy
Coinbase has previously obtained local licenses in Germany, France, Ireland, Italy, the Netherlands, and Spain. With MiCA now in effect, the exchange is consolidating these efforts to streamline operations under one EU-wide license.
“This marks a major milestone,” Coinbase stated. “MiCA allows us to bring regulated, trusted, and secure crypto services to millions of Europeans.”
What is MiCA and why does it matter?
The Markets in Crypto-Assets regulation, which came into force in June 2023, standardizes crypto regulation across the EU. It allows licensed firms in one country to legally operate throughout the EU, making it easier for exchanges to scale. However, while MiCA centralizes licensing, individual member states retain limited rights to restrict activities if justified by law.
Criticism over ‘regulation shopping’ intensifies
Despite the regulatory clarity, critics argue that the MiCA framework creates loopholes. By allowing companies to choose any EU member state for registration, there’s growing concern over regulatory arbitrage. Exchanges may opt for jurisdictions with lighter oversight or fewer resources.
Gemini is currently attempting to register in Malta, following a similar path. Other exchanges like OKX, Bitstamp, and Crypto.com have also received approval in smaller states. However, Malta fined OKX $1.2 million in April for past anti-money laundering violations, highlighting enforcement concerns.
Concerns over enforcement and consumer protection
Peter Curk, CEO of UK-based crypto platform ICONOMI, warned that this could trigger a “race to the bottom” in regulatory standards.
“If countries with limited oversight grant licenses, it risks weakening consumer protection and damaging cross-border trust,” Curk said.
The European Securities and Markets Authority (ESMA) is currently reviewing Malta’s licensing practices and will release a report assessing their impact on the EU’s broader financial ecosystem.
A crucial step in Europe’s crypto regulation journey
While Coinbase’s MiCA license is a major achievement for the exchange, it reignites important questions about regulatory consistency, enforcement capacity, and the EU’s collective reputation in digital finance. As MiCA reshapes crypto compliance across Europe, the true test will be in how well the framework protects users and maintains trust across borders.
