Coinbase has secured a Markets in Crypto-Assets (MiCA) license from the Luxembourg Commission de Surveillance du Secteur Financier, which enables the exchange to offer crypto products across European Union countries.
The move signals mounting competition in the European crypto market, where other exchanges have also been pursuing registrations. OKX and Crypto.com secured MiCA licenses in January, followed by Bybit in May. Gemini is also on track to obtain a license in the region, according to a Reuters report.
Coinbase has named Luxembourg as its new European headquarters, citing the country’s reputation as a progressive financial center in Western Europe. Bordered by Belgium, France and Germany, the country has been gradually advancing crypto regulations since 2019.
“Luxembourg is actively pursuing a whole-of-government approach to blockchain and DLT, and has passed four blockchain-related policies through the national legislature,” Coinbase said.
At the time of this writing, Coinbase shares are up 4.95% on the day of the announcement, rising to $309.92 from a close of $295.29 on Thursday, according to Google Finance.
In May, Coinbase announced a deal to acquire options trading platform Derebit for $2.9 billion. On May 19, the exchange became the first crypto company to join the S&P 500, an index of the 500 largest publicly traded companies in the United States.
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Crypto investing in Europe is rising
MiCA is a regulatory framework that seeks to standardize rules for the crypto industry within the European Union, protect crypto investors and enhance financial stability. It was adopted in May 2023 and came into full enforcement in December 2024.
Crypto investing in Europe is rising, with an estimated 10%-20% of European investors having some exposure to the nascent industry.
Utility is emerging as a key driver of crypto adoption rather than just capital appreciation, with 70% of crypto payments going to retail, food and beverages. Crypto usage on decentralized finance applications is also rising in Eastern Europe.
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