Coinbase Becomes the Initial U.S. Exchange to Obtain EU-Wide Crypto asset License
Coinbase has emerged as the first U.S.-originated crypto trading protocol to obtain a MiCA license, affording it legitimate authority to provide services throughout the European Union.
This license was granted by Luxembourg’s financial authority, allowing operations in all 27 EU member states, along with Iceland, Liechtenstein, and Norway.
As a result of this development, Coinbase will relocate its European operational base from Ireland to Luxembourg.
Why Luxembourg Prevails
Coinbase’s European leadership indicates that Luxembourg was distinguished by its developed blockchain regulations and a regulatory body more acquainted with the crypto industry. Although Ireland hosted Coinbase’s former EU activities, it has not yet enacted crypto-specific laws. Conversely, Luxembourg has already established numerous distributed ledger regulations, granting it a tangible advantage when MiCA regulations come into play in early 2026.
MiCA licence secured
It was wonderful to meet with Luxembourg Prime Minister @LucFrieden, the Crown Prince, and the incredibly hospitable ministers as we announce the receipt of our MiCA license from the CSSF.
It’s time to elevate crypto adoption in Europe. https://t.co/Xcv7q2tFqJ pic.twitter.com/m2R8PrY4qx
— Brian Armstrong (@brian_armstrong) June 20, 2025
Daniel Seifert, Coinbase’s regional managing director, stated that Luxembourg was more prepared and provided a clearer regulatory framework. This combination facilitated a straightforward decision.
What MiCA Really Means for Crypto
MiCA, which stands for Markets in Crypto-Assets crypto law, serves as the EU’s comprehensive framework for digital assets. It replaces the fragmented local regulations with a singular, uniform standard for licensing, regulation, and investor safety across the region.
For Coinbase, obtaining a MiCA license means that the exchange can provide crypto trading, custody, and merchant services throughout the entire European trading market without needing to apply for licenses in every separate country. Other prominent exchanges such as OKX, Crypto.com, and Bybit have also secured MiCA licenses, but Coinbase stands out as the first significant player from the United States to achieve this milestone.
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Significance for Coinbase Users in Europe
For users in Europe, this development allows Coinbase to expand its range of products across the continent. This includes 24/7 USDC settlement for merchants and increased regional integrations in the upcoming months. It also positions Coinbase as a leader in regulatory adherence, especially at a time when some competitors operate within areas of legal uncertainty.
Investors also appeared to welcome the news. Coinbase’s stock surged over 3 percent following the announcement, reflecting enhanced confidence in the exchange’s global strategy.
A Broader Regulatory Shift in the EU
Luxembourg is not the sole nation racing to license crypto companies. Malta, for instance, has already granted MiCA licenses to Gemini, OKX, and Crypto.com. This competition among regions has raised concerns among some EU regulators, who are apprehensive that more relaxed jurisdictions could lead to inconsistent enforcement.
Nevertheless, the aim across the EU is to establish a cohesive regulatory framework that prevents regulatory arbitrage while promoting innovation. MiCA is intended to fulfill that purpose.
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What Lies Ahead
Coinbase now must develop its local team in Luxembourg, manage its licensing responsibilities, and ensure a seamless transition from its Irish operational base. Additionally, it faces rivalry from other significant players, both U.S.-based and international, who are pursuing their own MiCA initiatives.
In the meantime, EU regulators will monitor closely to ensure that all licensed platforms maintain elevated regulation standards. As the crypto sector evolves, striking the right balance between innovation and accountability will be crucial.
The Conclusion
Coinbase’s license represents a significant achievement, not only for the company but for the broader movement toward regulated crypto marketplaces in Europe. It symbolizes a transition from regulatory uncertainty to a structured, rule-based system. Whether others will follow the same trajectory or be left behind will depend on who can swiftly adapt to this new regulatory landscape.
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Key Takeaways
- Coinbase has emerged as the first U.S.-originated exchange to obtain a MiCA license, allowing access to all 27 EU member states plus Iceland, Liechtenstein, and Norway.
- The license was granted by Luxembourg’s authority, prompting Coinbase to shift its European headquarters from Ireland to Luxembourg.
- MiCA establishes a harmonized crypto regulatory framework across the EU, abolishing the need for licensing on a country-by-country basis.
- Coinbase users in Europe will gain from expanded services, including 24/7 USDC settlement and enhanced merchant functionalities.
- Coinbase’s licensing reflects the increasing regulatory convergence between the U.S. and EU as the crypto industry evolves into a globally regulated market.
The post Coinbase Becomes First U.S. Exchange to Get EU-Wide Crypto License appeared first on 99Bitcoins.
