The Gemini exchange, founded by the Winklevoss twins, decided on Malta as the main European hub that complies with MiCA. The exchange received its sixth European license from the Malta Financial Services Authority (MFSA) back in December 2024.
According to the MFSA Financial Services Register, a 'class 3' Gemini VFA Service Provider licence authorized the exchange to provide six services. Gemini can now offer transfer services, custodian or nominee services, virtual financial asset placement, order transmission and reception, own account handling, and execution of orders on behalf of users under Maltese crypto regulations.
Gemini's announcement confirmed that its choice of Malta – over previously considered Dublin – as a major European hub was driven primarily by the country's proactive approach to crypto regulations. Malta supported innovation among digital asset and fintech companies, creating an ideal environment for the exchange's European operations.
Gemini's decision represents its commitment to regulatory standards
Ireland has missed out on an important crypto regulatory foundation.
Gemini (the Winklevoss twins) have chosen Malta as Mica reg headquarters, despite the fact that the EU headquarters are in Dublin.
Perhaps related: Central Bank of Ireland has delayed major regulatory moves here.https://t.co/KamSs2uqSJ
— Adrian Weckler (@adrianweckler) January 20, 2025
Mark Jennings, head of Europe at Gemini, agreed that MiCA was a much-needed regulatory development for the European crypto community. He expressed his enthusiasm about MiCA serving as a blueprint for global crypto regulations.
The introduction of MiCA forced all crypto companies to assess the compliance of their products within the EU bloc. According to Gemini's statement, they came to the decision to make Malta the MiCA center after the European regulations were fully implemented at the end of last year.
Jennings, however, said Gemini had not yet received MiCA approval from Maltese regulators. He also said that in order to be able to achieve a MiCA license, a crypto company would have to either submit a new license application, or wait for the transition period with existing VASP licenses where the the company up to MiCA.
The first phase of the rules covering the stable came into effect in mid-2024, but broader crypto transactions were brought under its scope towards the end of the year. Many exchanges have so far listed non-compliant stablecoins, while others like Gemini were busy announcing their preferred operating hubs.
“Our decision to establish Malta as our MiCA hub demonstrates our commitment to upholding regulatory standards, promoting innovation, and shaping the future of digital assets in Europe.”
~Mark Jennings
According to the finance, additional MiCA regulations were likely to indirectly affect third-party crypto sellers. Gemini was also focusing on its Asian expansion after receiving approval in principle from MAS (Monetary Authority of Singapore) in October 2024.
MiCA's transparency extends to escrow services as stablecoin uncertainty continues
Jennings said organizing for a compliant capture services infrastructure was among the key elements of Gemini's MiCA compliance. The requirements included tracking and ensuring that integrated onboarding processes met regulatory standards, the executive added. Gemini had different customer board needs in Spain, France and Italy before Malta was made the European hub. Jennings explained that MiCA had enabled the exchange to build a scalable solution that supports the entire EU.
According to Jennings, allocating resources to be able to build the necessary infrastructure to support MiCA was the biggest hurdle. However, he saw it as an opportunity, not a challenge. The biggest point for exchanges around the world was how to build locally compliant custody offerings. Jennings explained that there were many infrastructure requirements to do that.
Gemini saw Europe move away from fragmented regulations as MiCA introduced greater transparency and resilience, Jennings said. The executive said that from Gemini's point of view, MiCA provided some regulatory certainty to customers who needed it. He admitted, however, that there was still uncertainty about MiCA's handling of some of the stable despite increased certainty regarding EU crypto regulations.
According to on-chain analyst and market watcher JA Maartunn, Ripple had RLUSD leading the cost in the MiCA era in Europe. Listing Tether stablecoins in Europe opened up space for MiCA-compliant stablecoins like the RLUSD, added contributor CryptoQuant.
Stablecoins like USDC Circle got MiCA approval last year.
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Source: https://www.cryptopolitan.com/malta-european-hub-for-gemini-mica/
