Cryptocurrency exchange Gemini, founded by the Winklevoss twins, has revealed plans to establish a hub in Malta to meet the requirements of Europe’s newly implemented Markets in Crypto Assets (MiCA) regulations. These regulations came into effect just days before major crypto firms were required to make significant adjustments for compliance.
Gemini’s decision to set up operations in Malta follows the exchange’s receipt of its sixth European virtual asset service provider (VASP) registration from the Malta Financial Services Authority (MFSA) in December 2024.
Gemini’s Expansion in Europe
Gemini emphasized that Malta’s proactive stance on supporting fintech innovation and the cryptocurrency ecosystem made it the ideal location to expand its European operations. While the exchange has begun setting up a MiCA hub in Malta, it has not yet received a MiCA license from the Maltese authorities. According to Mark Jennings, Gemini’s head of Europe, obtaining the MiCA license requires either a new license application in a different jurisdiction or a transition period for existing VASP licenses to be upgraded to MiCA standards.
Currently, Gemini holds VASP licenses in six EU countries, including Malta, France, Ireland, Italy, Spain, and Greece. After securing its French license, Gemini began offering services in France in November 2024.
Building Infrastructure for MiCA Compliance
Jennings noted that one of the key aspects of MiCA compliance for Gemini is the development of a compliant services infrastructure. This includes establishing consistent onboarding processes that meet the regulatory requirements.
“Previously, we had separate onboarding requirements for countries like France, Spain, and Italy,” Jennings explained. “However, MiCA has allowed us to create a scalable solution that can support the entire European market.”
Jennings viewed this shift not as a challenge but as an opportunity. “The biggest challenge we faced was allocating resources to build the necessary infrastructure to support MiCA,” he said. “One of the primary concerns for global exchanges is building a locally compliant custody offering, which requires significant infrastructure.”
MiCA’s Impact on Europe’s Crypto Landscape
Jennings also expressed optimism about MiCA’s role in creating a more unified regulatory framework in Europe, enhancing both transparency and market resilience. “From our perspective, MiCA provides regulatory certainty for customers who have been seeking it,” he added.
However, despite the increasing regulatory clarity in Europe, Jennings acknowledged that there is still some ambiguity regarding the treatment of stablecoins under MiCA. This uncertainty has led major players like Tether to face challenges in maintaining operations in the region.
Ian Allison is a senior reporter at CoinDesk, focused on institutional and enterprise adoption of cryptocurrency and blockchain technology, with a particular expertise in Gemini and its role in the evolving digital asset ecosystem. Prior to that, he covered fintech for the International Business Times in London and Newsweek online. He won the State Street Data and Innovation journalist of the year award in 2017, and was runner up the following year. He also earned CoinDesk an honourable mention in the 2020 SABEW Best in Business awards. His November 2022 FTX scoop, which brought down the exchange and its boss Sam Bankman-Fried, won a Polk award, Loeb award and New York Press Club award. Ian graduated from the University of Edinburgh. He holds ETH.