Gemini Exchange Chooses Malta as Its MiCA Compliance Hub for Europe

The Winklevoss twins’ cryptocurrency exchange, Gemini, has officially selected Malta as its primary hub for compliance with the European Union’s Markets in Crypto-Assets (MiCA) framework. This strategic decision was announced on January 20 and underscores Gemini’s commitment to operating within regulated spaces across Europe.

Gemini’s head of Europe, Mark Jennings, highlighted that the biggest hurdle faced in establishing MiCA compliance was the allocation of resources necessary to build an adequate infrastructure. He stated, “The biggest challenge we had was allocating resources to be able to build the necessary infrastructure to support MiCA.” This infrastructure is essential for the smooth operation and scaling of their services in alignment with regulatory requirements.

Recently, Gemini had achieved a significant milestone by securing its sixth European Virtual Asset Service Provider (VASP) registration from the Malta Financial Services Authority (MFSA) in December 2024. This comes after Gemini launched its crypto asset services in France in November 2024, further solidifying their presence in the European market.

While establishing this European MiCA hub in Malta, Jennings confirmed that the exchange is currently awaiting its MiCA license from Maltese financial regulators. He explained that to acquire a MiCA license, there are two pathways: a brand new license application or a transitional arrangement that allows existing VASP licenses to be elevated to MiCA standards.

Importance of Custody Compliance

  • Creating a locally compliant custody offering is crucial for MiCA compliance.
  • There is a significant level of infrastructure needed to meet regulatory standards.
  • MiCA aims to enhance transparency across different jurisdictions, which enables a unified onboarding process.

Despite the move towards clearer regulations in the EU, some uncertainty remains, particularly surrounding the treatment of stablecoins under the MiCA framework. Companies like Circle have received regulatory approval for stablecoins like USDC, while others, such as Tether with its USDT, have voiced concerns about compliance. This has sparked speculation about potential delistings of non-compliant stablecoins, affecting their market positioning.

In light of these developments, Jennings emphasized that the MiCA regulation could transform challenges into opportunities. By integrating unified compliance measures throughout Europe, companies like Gemini can expand their services efficiently while meeting the stringent demands of regulators. As the crypto world continues to evolve, Gemini’s proactive strategy in Malta positions it as a leader in the European market.

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