According to a recent report, cryptocurrency exchange Gemini, founded by the Winklevoss twins, has warned it may move its European headquarters out of Ireland due to the government’s implementation of new EU regulations for the crypto industry.
Gemini announced Dublin as its European base in May 2023, but says the Department of Finance’s rules for complying with the EU’s Markets in Crypto Assets Regulation (MiCAR) will make Ireland less competitive than other European countries.
The company already has two licenses from Ireland’s Central Bank but says the transition period of 12 months granted to apply for a new license under MiCAR is too short. It has asked for the full 18 months allowed under the EU regulation, given its existing credentials.
Gemini says other EU states are implementing the rules in a more flexible way that is “preferable” for crypto businesses. It warns Ireland could lose its “competitive edge” and that the new licensing rules make it a “less attractive location for investment.”
The Irish government brought in the 12 month transition period due to consumer protection concerns and because Ireland’s existing crypto licensing is not comparable to the new EU regulation.
But Gemini says companies with existing dual licenses should not face a shortened transition as they have already invested significant time and money in Ireland.
The standoff raises concerns that one of Europe’s major crypto companies may exit Ireland if its demands are not met.
Also Read: Gemini Seeks Senior Backend Engineer for Crypto Core Team
