The Gemini cryptocurrency exchange, co-founded by the Winklevoss twins, is taking steps to adhere to European cryptocurrency regulations by establishing a specialized center in Malta.
Based on a statement shared with CryptoMoon on January 20th, Gemini opted Malta as its base for aligning with the European Union’s Markets in Crypto-Assets (MiCA) regulatory framework.
The action was taken not long after Gemini obtained its sixth license for providing virtual asset services within Europe, issued by the Malta Financial Services Authority (MFSA), in December 2024.
Based on Gemini’s perspective, Malta’s forward-thinking stance towards fostering fintech advancements and cryptocurrency systems creates a perfect setting for the exchange to expand its European activities.
Gemini has yet to receive the MiCA license
Although setting up its MiCA center in Malta, Gemini is still waiting for the MiCA license from Maltese regulatory authorities, as confirmed by Gemini’s European head, Mark Jennings, to CryptoMoon.
Jennings mentioned that obtaining a MiCA license can be done by submitting a fresh application for a new license in another jurisdiction, or if you currently hold a VASP (Virtual Asset Service Provider) license, there’s a transitional period during which you can upgrade to the MiCA standard.
Currently as of January 20th, the company Gemini possesses Virtual Asset Service Provider (VASP) licenses in six European Union countries: Malta, France, Ireland, Spain, Italy, and Greece. Following the acquisition of the French license, Gemini launched its cryptocurrency services in France during November 2024.
Custody among key elements of MiCA compliance
As an analyst, I can express it this way: Ensuring a compliant service infrastructure was one of the crucial aspects for Gemini’s MiCA compliance, as per Jennings. This involved meticulously tracking and maintaining unified onboarding procedures that adhere to regulatory norms.
Earlier, we faced distinct criteria for welcoming clients in France, Spain, and Italy. However, with MiCA in place, our platform was able to construct a flexible, pan-European solution, according to the executive.
Jennings stated, “I view this more as an opportunity than a hurdle. Our main difficulty was figuring out how to allocate resources for constructing the required infrastructure for MiCA.” He further explained.
“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.”
MiCA adds clarity, but stablecoin uncertainty persists
According to Jennings, with MiCA, Europe is shifting towards a unified regulatory structure, aiming to increase transparency and robustness, as expressed by the term ‘Gemini’.
The executive stated that from their point of view, this decision provides a level of regulatory assurance that many clients have been seeking.
As a dedicated researcher delving into the intricacies of European crypto regulations, I must acknowledge that while there’s a growing sense of clarity on the subject, there remains some ambiguity surrounding how the Markets in Crypto-Assets (MiCA) framework applies to certain stablecoins.
Last year, major stablecoin providers such as Circle were given approval by MiCA for their USDC coin. Conversely, Tether, the issuer of the most popular stablecoin, USDT, has voiced opposition to MiCA regulation. This stance has fueled discussions about potential delistings of USDT across EU exchanges due to its non-compliance with MiCA rules.
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2025-01-20 14:06