Gemini has announced the creation of a European hub in Malta to align with the EU’s Markets in Crypto Assets (MiCA) regulations.
Cryptocurrency exchange Gemini, founded by the Winklevoss twins has announced setting up a hub in Malta, in order to comply with Europe’s recently introduced Markets in Crypto Assets (MiCA) regulations. The regulations have kicked in just a few days before forcing top crypto firms to make key shifts for compliance.
The reason behind Gemini moving to Malta is that the crypto exchange received its sixth European virtual asset service provider (VASP) registration from the Malta Financial Services Authority (MFSA) last month in December 2024.
Crypto exchange Gemini stated that Malta’s proactive approach to supporting fintech innovation and the crypto ecosystem makes it an ideal location for the exchange to expand its operations in Europe. Although Gemini made a move to establish a European MiCA hub in Malta, it has yet to secure a Malta license from the Maltese regulator. Speaking on the development, Gemini’s head of Europe Mark Jennings said:
“To be able to achieve a MiCA license, you either have to file a brand new license application in a new jurisdiction, or there’s a transition period with existing VASP licenses where you would uplift into MiCA”.
Currently, as of today, Gemini is holding a VASP license in six countries across the EU. This includes France, Malta, Ireland, Italy, Spain, and Greece. After securing a French license, crypto exchange Gemini rolled out its services in France last November 2024.
Gemini Working to Address Key Elements of MiCA Europe Compliance
Gemini’s head of Europe Jennings stated that one of the key aspects of being MiCA compliant for the exchange was establishing a compliant services infrastructure. This involved tracking and ensuring consistent onboarding processes that would meet the regulatory standards.
“Previously, we had separate requirements for onboarding customers in France, Spain, and Italy,” the executive said. However, MiCA has allowed the exchange to develop a scalable solution that supports all of Europe. Jennings further added:
“I don’t see it as a challenge but rather an opportunity. The biggest challenge we had was allocating resources to be able to build the necessary infrastructure to support MiCA. The biggest point for most of the kinds of global exchanges is how we build a locally compliant custody offering […] There is a lot of infrastructure required to do that.”
With MiCA, Europe is moving toward unified regulation, enhancing transparency and resilience, Jennings said. “From our perspective, it provides regulatory certainty for customers who have been seeking it,” the executive said.
However, he also acknowledged that despite the growing regulatory clarity for crypto in Europe, there’s still uncertainty over the MiCA treatment of stablecoins. As a result, top players like Tether are finding it difficult to continue operations in the region.
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