Coinbase has officially received regulatory approval to offer crypto services across the European Union after securing a MiCA (Markets in Crypto-Assets) license from Luxembourg’s financial regulator, the Commission de Surveillance du Secteur Financier (CSSF).
This will make Coinbase the first U.S.-based crypto exchange to be provided with a MiCA license- a huge milestone in its European expansion strategy. Although initially Coinbase identified Ireland as the choice of its European center in 2023, the company changed its positions and switched to Luxembourg due to the high level of crypto regulation in this European country and business-friendly atmosphere.
According to Daniel Seifert, Coinbase’s EMEA VP and regional MD, the shift was not due to dissatisfaction with Ireland, but rather Luxembourg’s appeal as a more progressive financial hub. Luxembourg has enacted four blockchain-related laws to date, while Ireland still lacks crypto-specific regulation.
The move by Coinbase takes place when MiCA regulations set to enact a complete EU-law suite regarding digital assets have taken full effect. The framework will attempt to regulate crypto laws in the 27-member bloc and safeguard consumers after historical scandals in the industry.
Even after moving its main operations, Coinbase still has a huge presence in Ireland, and it plans to increase its workforce in the city by hiring approximately 50 new workers in Dublin. Seifert has also relocated to Ireland to lead Coinbase’s Irish division.
CEO Brian Armstrong expressed strong commitment to the region, saying, “Coinbase is all in Europe, and we’re advocating for crypto’s future across the continent.”
Other major exchanges such as Gemini, Bybit, OKX, and BitGo are also racing to obtain MiCA licenses, with Gemini opting for Malta as its European base earlier this year.
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