Gemini’s Bold Move: Malta Hub to Tackle Europe’s Crypto Regulations!

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Gemini, the cryptocurrency exchange established by the Winklevoss twins, has disclosed plans to establish a base in Malta. This move aims to adhere to the freshly implemented Markets in Crypto Assets (MiCA) regulations that are being enforced across Europe. With these regulations becoming effective soon, leading crypto companies have been urged to make significant adjustments for compliance.

The cause for Gemini’s relocation to Malta was that their cryptocurrency exchange secured its sixth European Virtual Asset Service Provider (VASP) license from the Malta Financial Services Authority (MFSA) in December 2024 during the previous month.

According to crypto exchange Gemini, Malta’s forward-thinking attitude towards fintech advancements and cryptocurrency sector makes it an excellent choice for expanding their European operations. Although Gemini has initiated steps to set up a MiCA hub in Malta, they haven’t received the necessary license from Maltese regulators as of yet. In regards to this progression, Mark Jennings, head of Europe at Gemini, commented on the matter.

To obtain a MiCA license, you can submit a fresh application for a license in a different jurisdiction or, if you already have an existing VASP license, you’ll be given a transition period to upgrade it to a MiCA license.

At present, Gemini, the crypto exchange, currently holds a VASP (Virtual Asset Service Provider) license in six European Union countries: France, Malta, Ireland, Italy, Spain, and Greece. Following the acquisition of a French license, Gemini began offering its services in France last November 2024.

Gemini Working to Address Key Elements of MiCA Europe Compliance

According to Gemini’s European head, Jennings, one essential requirement for being compliant with MiCA (Markets in Crypto-Assets) regulation is setting up a compliant service structure. This entails monitoring and maintaining uniform user onboarding procedures that adhere to regulatory guidelines.

Earlier, there were distinct customer onboarding standards for France, Spain, and Italy, as mentioned by the executive. Yet, with the advent of MiCA, our platform now offers a flexible solution that caters to the entire European market, as clarified by Jennings.

I view it more as an opportunity than a challenge. The major hurdle we faced was figuring out how to distribute resources effectively to create the necessary framework for MiCA. For many global exchange types, the primary concern is developing a custodial service that complies with local regulations. Building such infrastructure demands considerable effort.

With MiCA, Europe aims to establish a unified regulatory framework, promoting transparency and robustness as stated by Jennings. This viewpoint offers regulatory clarity that many customers have been requesting.

Nevertheless, he conceded that even with increasing regulatory transparency regarding cryptocurrencies in Europe, the interpretation of MiCA concerning stablecoins remains unclear. This ambiguity is causing challenges for leading companies such as Tether to persist in their regional activities.

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2025-01-20 17:57