Coinbase just acquired a coveted MiCA license in Luxembourg, allowing the exchange to operate fully across the European Union. It’s also opening a field office in the country to further coordinate expansion plans.
The company’s stock rose more than 4% after this announcement. Coinbase called this a “pivotal moment,” as it can turn into a major business expansion.
Coinbase Acquires MiCA License
Markets in Crypto Assets (MiCA) is a landmark piece of crypto regulation in the EU, bringing significant changes to the regional industry.
Major crypto firms have already left the market bloc, creating setbacks and opportunities alike. Today, Coinbase announced that it acquired a MiCA license, freeing it up to “offer a full suite of products and services.”
In its press release, the world’s second-largest exchange described how monumental this licensing is. MiCA registration will let Coinbase access 450 million customers, which is its biggest competitor, Binance, can’t.
Already, the exchange’s stock price has risen over 4% since the announcement:
By operating a new regional office in Luxembourg, the exchange signifies its long-term commitment to developing relationships in the region.
Other CEXs have made similar moves in the past, creating local physical infrastructure to better interface with regulators.
Case in point: Coinbase has been trying to meet MiCA compliance for several months now. Some EU member states have developed reputations for quick and easy license approval, but Luxembourg is not one of them.
Coinbase is setting up operations in a nation bordering the EU’s biggest financial powerhouses, preparing for real integration with the market.
“By choosing Luxembourg, we’re positioning ourselves in a jurisdiction that understands the needs of the crypto industry and excels in regulatory clarity. This new hub represents a landmark step forward. Coinbase has worked closely with regulators across Europe, [and] with MiCA, we’re uniting these efforts under a single framework,” the firm stated.
Over the past few months, Coinbase has been increasingly expanding outside of the US crypto market. Earlier this year, it achieved a regulatory license in Argentina.
However, with MICA, Europe would likely be Coinbase’s biggest expansion outside the American market.
Overall, the exchange has a significant opportunity to dominate the CEX market across an entire continent. With a clear vision and clever maneuvering, Coinbase could deliver a substantial victory.
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