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Crypto Heavyweights Close to EU Licenses Amid Regulatory Tensions

By  |  June 15, 2025

Two leading cryptocurrency firms are on the brink of obtaining European Union-wide licenses, as internal tensions grow among national regulators over the pace and diligence of the approval process, according to Reuters.

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    The firms—Gemini, the trading platform founded by Tyler and Cameron Winklevoss, and another major player—are navigating the newly implemented Markets in Crypto-Assets (MiCA) framework, which allows firms licensed in one EU member state to operate across the entire 27-country bloc. This passporting mechanism, central to MiCA’s mission, is designed to align crypto oversight with traditional financial systems. However, concerns have emerged among regulators about inconsistent enforcement and a possible erosion of standards.

    Per Reuters, Gemini is close to securing a license from Malta, the EU’s smallest member state. This would mark a significant milestone for the company and follows earlier approvals granted by Maltese authorities to OKX and Crypto.com—just weeks after MiCA went into effect.

    The swift issuance of licenses by Malta has drawn critical attention from regulators in other countries, particularly those involved in confidential talks under the European Securities and Markets Authority (ESMA). According to Reuters, two individuals familiar with those discussions expressed concern that rapid licensing in smaller jurisdictions could sidestep the rigorous vetting needed to safeguard financial stability and combat illicit activity.

    Related: Crypto Regulation Measure Advances in the House

    MiCA was designed to impose order on a fast-growing industry that has faced frequent criticism for facilitating financial crime and lacking transparency. While the regulation seeks to standardize supervision, some regulators worry that its effectiveness could be undermined by what they see as a “race to the bottom” in compliance standards.

    France’s Autorité des Marchés Financiers (AMF) has gone so far as to publicly caution that the current setup—where ESMA lacks direct authority over national decisions—might lead to uneven enforcement. Another senior official, speaking anonymously, told Reuters they were particularly uneasy about accepting licenses from countries with limited regulatory capacity, singling out Malta as an example.

    ESMA has reportedly initiated a review of Malta’s licensing practices, and a report on its findings is expected to circulate soon, according to sources cited by Reuters.

    In response, the Malta Financial Services Authority defended its approach, stating that it had issued four licenses under MiCA so far and attributed the speed of its process to its long-standing experience with crypto regulation. The authority emphasized that its expedited approvals reflect a “deep understanding acquired over these years.”

    Source: Reuters