Luxembourg Approval Enables Expansion Across 27 Countries
Coinbase has obtained a regulatory license under the European Union’s Markets in Crypto Assets (MiCA) framework, marking a significant milestone in the company’s international expansion. The approval was granted by Luxembourg’s financial regulator and gives the U.S.-based crypto exchange the right to operate across all 27 EU member states under a unified regulatory structure.
The license allows Coinbase to offer its full range of crypto services throughout the EU without having to secure individual permissions from each country—a development that aligns with the EU’s goal of standardizing crypto oversight across the bloc.
Why Luxembourg? Coinbase Explains Its Choice
Coinbase explained that Luxembourg was chosen as its regulatory base due to the nation’s proactive stance on blockchain innovation. The country has passed four blockchain-related laws in recent years and is known for its collaborative approach between government agencies and fintech companies.
“Over the past few years, Coinbase has worked closely with regulators across Europe, securing licenses in Germany, France, Ireland, Italy, the Netherlands, and Spain,” the company said in its statement. “Now, with MiCA, we’re uniting these efforts under a single framework, enabling millions of Europeans to access regulated, trusted, and secure crypto services.”
The move was widely anticipated, as speculation had been growing that Coinbase—and rival exchange Gemini—were preparing to register under the MiCA regime.
Understanding MiCA: A New Regulatory Era for Crypto in Europe
Implemented in June 2023, MiCA is a landmark legislative framework designed to bring consistency to the regulation of crypto asset services across the EU. Under MiCA, companies that receive authorization in one EU country can legally offer their services in the remaining member states, a process known as “passporting.”
While each country retains limited authority to block specific activities under justified legal grounds, MiCA largely removes national regulatory barriers, streamlining crypto operations across the continent.
Criticism Mounts Over ‘Regulatory Shopping’
Despite its benefits for streamlining business operations, the MiCA passporting model has faced criticism from various corners of the industry. Some analysts argue that firms are engaging in “regulation shopping,” seeking licenses in smaller jurisdictions perceived to have lighter compliance obligations or fewer enforcement resources.
Peter Curk, CEO of U.K.-based crypto portfolio management platform ICONOMI, expressed concerns about this trend. “Having countries with lower regulatory capacity grant licenses to companies could dilute consumer protection and cross-border trust,” he told Decrypt. “The debate isn’t just about licenses—it’s about the EU’s collective reputation in digital finance.”
A Pattern Emerges: Smaller States as Crypto Gateways
Coinbase’s registration in Luxembourg follows similar moves by other exchanges in smaller EU countries. Gemini, for instance, is actively pursuing registration in Malta—a jurisdiction that has also granted licenses to major crypto firms like OKX, Bitstamp, and Crypto.com.
However, smaller jurisdictions are not exempt from scrutiny. In April 2025, Maltese regulators fined OKX $1.2 million for prior failures related to anti-money laundering (AML) compliance. The incident highlighted that although licensing may be easier to obtain in some member states, ongoing supervision and enforcement can still apply.
EU Regulators Eye Stricter Oversight
The European Securities and Markets Authority (ESMA) is now reviewing the licensing processes of countries like Malta, in an effort to ensure that enforcement standards are upheld across the bloc. A formal report from ESMA is expected later this year.
The outcome of that review may have long-term implications for how member states are permitted to issue MiCA licenses and could reshape how crypto companies select their EU entry points.
What’s Next for Coinbase in Europe?
With its MiCA license secured, Coinbase is well-positioned to scale its services across the continent. The company’s next steps may include deepening partnerships, expanding its user base, and tailoring its products to meet diverse regulatory and consumer needs in individual EU countries.
While the MiCA license marks a strategic win, the regulatory debate it reignites will continue to shape the future of digital finance in Europe.
